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What: Shares of McDermott International
So what: Revenue grew 51% in the fourth quarter to $816.2 million, driven by the Asia Pacific region. Net income from continuing operations was $9.3 million, or $0.04 per share, down from $45.5 million a year ago. Analysts had expected $0.19 in earnings per share.
Now what: The bad earnings news was overshadowed today by the company's positive outlook. Brazil and Mexico are expected to drive future earnings, and the company said $0.70 to $1.01 of earnings per share for the year is a reasonable expectation. With the price of energy rising, I think McDermott can continue to leverage that to stronger earnings next year and beyond after a rough 2011.
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Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.
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