The 10-second takeaway
For the quarter ended Sep. 30 (Q3), SeaDrill missed slightly on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share grew significantly.
Gross margins contracted, operating margins dropped, net margins expanded.
SeaDrill reported revenue of $1.09 billion. The 18 analysts polled by S&P Capital IQ wanted to see a top line of $1.11 billion on the same basis. GAAP reported sales were 8.4% higher than the prior-year quarter's $1.01 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 $0.35. The 12 earnings estimates compiled by S&P Capital IQ forecast $0.68 per share. GAAP EPS of $0.40 for Q3 were 471% higher than the prior-year quarter's $0.07 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 61.3%, 230 basis points worse than the prior-year quarter. Operating margin was 37.8%, 780 basis points worse than the prior-year quarter. Net margin was 17.3%, 1,380 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.17 billion. On the bottom line, the average EPS estimate is $0.78.
Next year's average estimate for revenue is $4.48 billion. The average EPS estimate is $2.99.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 938 members out of 948 rating the stock outperform, and 10 members rating it underperform. Among 192 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 189 give SeaDrill a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on SeaDrill is hold, with an average price target of $42.86.
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