SeaDrill Limited Goes Red

Seth Jayson, The Motley Fool
Updated

SeaDrill Limited (NYS: SDRL) reported earnings on Feb. 29. Here are the numbers you need to know.

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

Compared to the prior-year quarter, revenue shrank and GAAP earnings per share dropped to a loss.

Gross margins increased, operating margins improved, net margins dropped.

Revenue details
SeaDrill Limited reported revenue of $1.06 billion. The 20 analysts polled by S&P Capital IQ expected a top line of $1.04 billion on the same basis. GAAP reported sales were 6.8% lower than the prior-year quarter's $1.12 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
EPS came in at -$0.23. The nine earnings estimates compiled by S&P Capital IQ predicted $0.71 per share. GAAP EPS were -$0.23 for Q4 compared to $0.42 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 61.0%, 370 basis points better than the prior-year quarter. Operating margin was 42.3%, 210 basis points better than the prior-year quarter. Net margin was -10.5%, 3,320 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $1.05 billion. On the bottom line, the average EPS estimate is $0.73.

Next year's average estimate for revenue is $4.48 billion. The average EPS estimate is $3.20.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 670 members out of 674 rating the stock outperform, and six members rating it underperform. Among 145 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 143 give SeaDrill Limited a green thumbs-up, and two give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on SeaDrill Limited is hold, with an average price target of $38.70.

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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. Motley Fool newsletter services have recommended buying shares of SeaDrill. 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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