Transocean Whiffs on Earnings

Seth Jayson, The Motley Fool
Updated

Transocean (NYS: RIG) reported earnings on Feb. 27. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Transocean beat expectations on revenues and whiffed on earnings per share.

Compared to the prior-year quarter, revenue improved, and GAAP loss per share improved.

Margins contracted across the board.

Revenue details
Transocean chalked up revenue of $2.42 billion. The 24 analysts polled by S&P Capital IQ expected net sales of $2.34 billion on the same basis. GAAP reported sales were 12% higher than the prior-year quarter's $2.16 billion.

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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 $0.23. The 30 earnings estimates compiled by S&P Capital IQ forecast $0.27 per share on the same basis. GAAP EPS were -$18.62 for Q4 against -$2.49 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 -5.9%, 4,430 basis points worse than the prior-year quarter. Operating margin was -25.0%, 4,210 basis points worse than the prior-year quarter. Net margin was -252.6%, 21,560 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $2.43 billion. On the bottom line, the average EPS estimate is $0.48.

Next year's average estimate for revenue is $10.32 billion. The average EPS estimate is $2.97.

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 $61.02.

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At the time thisarticle was published Seth Jayson owned shares of the following at the time of publication: Transocean. 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. The Motley Fool owns shares of Transocean. 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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