McDermott International Goes Negative

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McDermott International (NYS: MDR) reported earnings on Feb. 29. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), McDermott International missed estimates on revenues and whiffed on earnings per share.

Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share dropped to a loss.

Margins shrank across the board.

Revenue details
McDermott International reported revenue of $816.2 million. The 15 analysts polled by S&P Capital IQ predicted net sales of $896.1 million on the same basis. GAAP reported sales were 51% higher than the prior-year quarter's $539.6 million.

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

EPS details
Non-GAAP EPS came in at $0.04. The 18 earnings estimates compiled by S&P Capital IQ predicted $0.19 per share on the same basis. GAAP EPS were -$0.04 for Q4 versus $0.19 per share for the prior-year quarter.

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

Margin details
For the quarter, gross margin was 11.0%, 1,090 basis points worse than the prior-year quarter. Operating margin was 5.1%, 630 basis points worse than the prior-year quarter. Net margin was -1.2%, 950 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $838.4 million.

Next year's average estimate for revenue is $3.55 billion.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,312 members out of 1,346 rating the stock outperform, and 34 members rating it underperform. Among 391 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 388 give McDermott International a green thumbs-up, and three give it a red thumbs-down.

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At the time this article was published 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 ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. 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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