McDermott International Beats Analyst Estimates on EPS
McDermott International (NYS: MDR) reported earnings on May 10. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), McDermott International whiffed on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly and GAAP earnings per share dropped.
Margins improved across the board.
McDermott International notched revenue of $727.7 million. The 14 analysts polled by S&P Capital IQ hoped for revenue of $840.9 million on the same basis. GAAP reported sales were 19% lower than the prior-year quarter's $899.2 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.25. The 18 earnings estimates compiled by S&P Capital IQ anticipated $0.15 per share. GAAP EPS of $0.26 for Q1 were 13% lower than the prior-year quarter's $0.30 per share. (The prior-year quarter included $0.01 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 17.9%, 100 basis points better than the prior-year quarter. Operating margin was 11.5%, 80 basis points better than the prior-year quarter. Net margin was 8.6%, 80 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $870.4 million. On the bottom line, the average EPS estimate is $0.21.
Next year's average estimate for revenue is $3.54 billion. The average EPS estimate is $0.89.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,300 members out of 1,332 rating the stock outperform, and 32 members rating it underperform. Among 321 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 315 give McDermott International a green thumbs-up, and six give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on McDermott International is outperform, with an average price target of $17.06.
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At the time this article 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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