McDermott Misses Big on Bottom Line
Energy industry EPCI (engineering, procurement, construction, and installation) specialist McDermott reported third-quarter results yesterday after the markets closed, showing that it posted revenues of $686.9 million, down 33% from the same period in the previous year, and well short of the $737.9 million Capital IQ consensus estimate.
While net losses came in at $64.1 million, or $0.27 per share, an almost 180-degree turn from the $50.6 million, or $0.21 per share profit in the same period in 2012, it was also $0.23-per-share worse than the CapIQ estimates of a $0.04-per-share loss.
McDermott says the reversal of fortunes from the year-ago period were the result of having completed several significant projects that had been active last year, but noted its Middle East segment returned to profitability this quarter.
The engineering, procurement, construction, and installation firm didn't provide earnings guidance for the coming quarter, but noted backlog stood at approximately $4.6 billion, compared to $5.1 billion at the end of the second quarter. Analysts anticipate McDermott will post earnings of $0.20 per share in the fourth quarter on revenues of $787.9 million.
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