The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Oceaneering International met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share increased.
Margins shrank across the board.
Oceaneering International reported revenue of $734.2 million. The 16 analysts polled by S&P Capital IQ looked for revenue of $730.7 million on the same basis. GAAP reported sales were 22% higher than the prior-year quarter's $602.2 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 $0.78. The 18 earnings estimates compiled by S&P Capital IQ predicted $0.78 per share. GAAP EPS of $0.78 for Q3 were 8.3% higher than the prior-year quarter's $0.72 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 23.3%, 210 basis points worse than the prior-year quarter. Operating margin was 16.9%, 130 basis points worse than the prior-year quarter. Net margin was 11.5%, 150 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $728.2 million. On the bottom line, the average EPS estimate is $0.73.
Next year's average estimate for revenue is $2.72 billion. The average EPS estimate is $2.65.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 770 members out of 785 rating the stock outperform, and 15 members rating it underperform. Among 171 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 163 give Oceaneering International a green thumbs-up, and eight 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 $61.53.
Are you missing a big story in the energy space? Read about "One Stock to Own Before Nat Gas Act 2011 Becomes Law." Click here for instant access to this free report.
- Add Oceaneering International to My Watchlist.
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 Oceaneering International. Motley Fool newsletter services recommend 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.