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.
Is SeaDrill the right energy stock for you? Read about a handful of timely, profit-producing plays on expensive crude in "3 Stocks for $100 Oil." Click here for instant access to this free report.
- Add SeaDrill 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 Seadrill. Motley Fool newsletter services recommend Seadrill. 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.