McDermott Earnings and Sales Plunge; Stock Does, Too

Before you go, we thought you'd like these...
Before you go close icon

Houston-based McDermott International shares sank into a Marianas Trench-sized hole Monday, when after-hours traders, learning the extent of the company's Q2 2013 shortfall, bid the stock down nearly 15%.

Earnings at the offshore oilfield services company reversed completely, from last year's $0.22-per-share Q2 profit to a $0.63 quarterly loss this year. Revenues, at $647 million, tumbled 28% year over year.

Explaining the revenue decline and lack of profits, McDermott pointed to "the completion of several significant projects" in the Middle East and Asia-Pacific segments "that were active in the 2012 second quarter," but are so no longer. Higher revenues from the company's Atlantic segment weren't high enough to offset the declines elsewhere.


Project backlogs are also down to $5.1 billion, from $5.3 billion just a few months ago, suggesting further revenue declines could await investors going forward.

The article McDermott Earnings and Sales Plunge; Stock Does, Too originally appeared on Fool.com.

Fool contributor Rich Smith and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't 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.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners

Guest Decides To Test The Hotel's Housekeeping - Then Returns To Find This On His Bed Guest Decides To Test The Hotel's Housekeeping - Then Returns To Find This On His Bed
A Special Ed Teacher Had All of Her Students in Her Wedding, and the Pictures are A Special Ed Teacher Had All of Her Students in Her Wedding, and the Pictures are
Rescuer Sees Bumps All Over This Dog's Skin - Then X-Rays Reveal The Tragic Story Rescuer Sees Bumps All Over This Dog's Skin - Then X-Rays Reveal The Tragic Story