The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Transocean missed estimates on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP loss per share expanded.
Gross margins grew, operating margins grew, net margins dropped.
Transocean reported revenue of $2.44 billion. The 24 analysts polled by S&P Capital IQ expected a top line of $2.52 billion on the same basis. GAAP reported sales were 8.8% higher than the prior-year quarter's $2.24 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 $1.37. The 29 earnings estimates compiled by S&P Capital IQ predicted $0.76 per share. GAAP EPS were -$1.06 for Q3 compared to -$0.22 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 45.2%, 1,390 basis points better than the prior-year quarter. Operating margin was 30.9%, 1,850 basis points better than the prior-year quarter. Net margin was -15.6%, 1,240 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $2.50 billion. On the bottom line, the average EPS estimate is $0.83.
Next year's average estimate for revenue is $9.92 billion. The average EPS estimate is $2.92.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Transocean is outperform, with an average price target of $59.80.
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