The 10-second takeaway
For the quarter ended Dec. 31 (Q4), SeaDrill beat expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue increased. Non-GAAP earnings per share expanded. GAAP earnings per share expanded.
Gross margins contracted, operating margins contracted, net margins grew.
SeaDrill reported revenue of $1.22 billion. The 22 analysts polled by S&P Capital IQ predicted a top line of $1.11 billion on the same basis. GAAP reported sales were 8.3% higher than the prior-year quarter's $1.04 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 $0.49. The 15 earnings estimates compiled by S&P Capital IQ averaged $0.57 per share. Non-GAAP EPS were $0.49 for Q4 compared to -$0.30 per share for the prior-year quarter. GAAP EPS were $0.04 for Q4 versus -$0.27 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 60.2%, 70 basis points worse than the prior-year quarter. Operating margin was 38.9%, 320 basis points worse than the prior-year quarter. Net margin was 1.5%, much 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 $0.61.
Next year's average estimate for revenue is $4.92 billion. The average EPS estimate is $2.84.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 999 members out of 1,007 rating the stock outperform, and eight members rating it underperform. Among 209 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 207 give SeaDrill a green thumbs-up, and two 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 $42.65.
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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 recommends Seadrill. The Motley Fool owns shares of 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.
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