McDermott International Shares Plunged: What You Need to Know
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of oil and gas infrastructure service provider McDermott International (NYS: MDR) fell nearly 27% after reporting lower-than-expected profits.
So what: Revenue rose 35% to $849.8 million, beating estimates, but a 30% decline in Middle East sales took a toll on profits. Earnings came in at $0.27 a share, a sharp decline from last year's $0.34 and five cents below analysts' consensus projection.
Now what: For his part, CEO Stephen Johnson in a statement cited $800 million in bookings and a
"strong" balance sheet but vowed to remain disciplined in managing the business. Translation: We're OK, but look elsewhere if it's outsized growth you're seeking. Do you agree? Disagree? Weigh in using the comments box below.
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