The 10-second takeaway
For the quarter ended June 30 (Q2), McDermott International met expectations on revenues and on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share contracted significantly.
Margins shrank across the board.
McDermott International logged revenue of $889.2 million. The 10 analysts polled by S&P Capital IQ anticipated net sales of $895.7 million on the same basis. GAAP reported sales were 4.6% higher than the prior-year quarter's $849.8 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 $0.22. The 16 earnings estimates compiled by S&P Capital IQ averaged $0.22 per share. GAAP EPS of $0.22 for Q2 were 24% lower than the prior-year quarter's $0.29 per share. (The prior-year quarter included $0.02 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 14.6%, 260 basis points worse than the prior-year quarter. Operating margin was 9.2%, 90 basis points worse than the prior-year quarter. Net margin was 5.9%, 200 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $944.2 million. On the bottom line, the average EPS estimate is $0.24.
Next year's average estimate for revenue is $3.48 billion. The average EPS estimate is $0.96.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,310 members out of 1,342 rating the stock outperform, and 32 members rating it underperform. Among 284 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 277 give McDermott 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 McDermott International is outperform, with an average price target of $16.44.
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