The 10-second takeaway
For the quarter ended March 31 (Q1), SeaDrill beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly. Non-GAAP earnings per share stayed the same. GAAP earnings per share shrank slightly.
Margins dropped across the board.
SeaDrill logged revenue of $1.27 billion. The 22 analysts polled by S&P Capital IQ predicted revenue of $1.14 billion on the same basis. GAAP reported sales were 23% higher than the prior-year quarter's $1.03 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 $0.68. The 14 earnings estimates compiled by S&P Capital IQ anticipated $0.58 per share. Non-GAAP EPS of $0.68 were the same as the prior-year quarter. GAAP EPS of $0.85 for Q1 were 2.3% lower than the prior-year quarter's $0.87 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 61.9%, 90 basis points worse than the prior-year quarter. Operating margin was 38.8%, 570 basis points worse than the prior-year quarter. Net margin was 32.3%, 830 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.13 billion. On the bottom line, the average EPS estimate is $0.60.
Next year's average estimate for revenue is $4.97 billion. The average EPS estimate is $2.76.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,032 members out of 1,042 rating the stock outperform, and 10 members rating it underperform. Among 211 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 209 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 $41.70.
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.