The 10-second takeaway
For the quarter ended June 30 (Q2), Transocean beat expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share dropped to a loss.
Margins shrank across the board.
Transocean booked revenue of $2.58 billion. The 17 analysts polled by S&P Capital IQ predicted a top line of $2.50 billion on the same basis. GAAP reported sales were 10% higher than the prior-year quarter's $2.33 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 $0.72. The 26 earnings estimates compiled by S&P Capital IQ predicted $0.45 per share. GAAP EPS were -$0.86 for Q2 against $0.48 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 8.5%, 2,760 basis points worse than the prior-year quarter. Operating margin was -8.0%, 2,590 basis points worse than the prior-year quarter. Net margin was -11.8%, 1,840 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $2.60 billion. On the bottom line, the average EPS estimate is $0.88.
Next year's average estimate for revenue is $10.01 billion. The average EPS estimate is $2.89.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Transocean is outperform, with an average price target of $65.17.
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