The 10-second takeaway
For the quarter ended June 30 (Q2), Oceaneering International met expectations on revenue and beat slightly on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share improved significantly.
Margins increased across the board.
Oceaneering International tallied revenue of $672.5 million. The 14 analysts polled by S&P Capital IQ predicted revenue of $668.6 million on the same basis. GAAP reported sales were 23% higher than the prior-year quarter's $545.8 million.
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 $0.67. The 17 earnings estimates compiled by S&P Capital IQ forecast $0.66 per share. GAAP EPS of $0.67 for Q2 were 29% higher than the prior-year quarter's $0.52 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 24.0%, 90 basis points better than the prior-year quarter. Operating margin was 16.4%, 140 basis points better than the prior-year quarter. Net margin was 10.8%, 40 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $723.1 million. On the bottom line, the average EPS estimate is $0.76.
Next year's average estimate for revenue is $2.71 billion. The average EPS estimate is $2.63.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 764 members out of 781 rating the stock outperform, and 17 members rating it underperform. Among 161 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 154 give Oceaneering International a green thumbs-up, and seven give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Oceaneering International is outperform, with an average price target of $60.73.
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Seth Jayson owned shares of the following at the time of publication: Oceaneering International. 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. Motley Fool newsletter services have recommended buying shares of Oceaneering International. 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.