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.

Interested in more info on McDermott International?Add it to your watchlist.

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Originally published