What Does Wall Street See for Transocean's Q1?

Transocean (NYSE: RIG) is expected to report Q1 earnings on May 9. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Transocean's revenues will expand 1.3% and EPS will grow 57.8%.

The average estimate for revenue is $2.36 billion. On the bottom line, the average EPS estimate is $1.01.

Revenue details
Last quarter, Transocean booked revenue of $2.33 billion. GAAP reported sales were 11% higher than the prior-year quarter's $2.06 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at $0.91. GAAP EPS were $1.27 for Q4 versus -$18.74 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 39.6%, 110 basis points better than the prior-year quarter. Operating margin was 24.6%, 330 basis points better than the prior-year quarter. Net margin was 20.0%, much better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $9.90 billion. The average EPS estimate is $4.65.

Investor sentiment

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Transocean is outperform, with an average price target of $59.39.

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