McDermott International Goes Negative

Seth Jayson, The Motley Fool
Updated

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 thisarticle 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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