The 10-second takeaway
For the quarter ended March 31 (Q1), SeaDrill met expectations on revenue and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue shrank and GAAP earnings per share dropped significantly.
Both gross margin and operating margin grew, while net margins dropped.
SeaDrill reported revenue of $1.05 billion. The 14 analysts polled by S&P Capital IQ looked for sales of $1.05 billion on the same basis. GAAP-reported sales were 5.2% lower than the prior-year quarter's $1.08 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.68. The eight earnings estimates compiled by S&P Capital IQ forecast $0.70 per share. GAAP EPS of $0.87 for Q1 were 52% lower than the prior-year quarter's $1.83 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 62.8%, 540 basis points better than the prior-year quarter. Operating margin was 44.5%, 500 basis points better than the prior-year quarter. Net margin was 40.6%, 4,070 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.11 billion. On the bottom line, the average EPS estimate is $0.79.
Next year's average estimate for revenue is $4.48 billion. The average EPS estimate is $3.22.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 818 members rating the stock outperform and eight members rating it underperform. Among 156 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 155 give SeaDrill a green thumbs-up, and one gives it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on SeaDrill is hold, with an average price target of $41.67.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of SeaDrill. Motley Fool newsletter services have recommended buying shares of SeaDrill. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.