McDermott International Shares Popped: 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 McDermott International (NYS: MDR) have climbed 16% today after reporting earnings that missed expectations. Wait... yes, that's what happened.
So what: Revenue grew 51% in the fourth quarter to $816.2 million, driven by the Asia Pacific region. Net income from continuing operations was $9.3 million, or $0.04 per share, down from $45.5 million a year ago. Analysts had expected $0.19 in earnings per share.
Now what: The bad earnings news was overshadowed today by the company's positive outlook. Brazil and Mexico are expected to drive future earnings, and the company said $0.70 to $1.01 of earnings per share for the year is a reasonable expectation. With the price of energy rising, I think McDermott can continue to leverage that to stronger earnings next year and beyond after a rough 2011.
Interested in more info on McDermott International? Add it to your watchlist byclicking here.
At the time this article was published Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.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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