McDermott International Inc. (NYSE:MDR) had a loss and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 12.71%.
McDermott International Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased to $-0.63 in the quarter versus EPS of $0.22 in the year-earlier quarter.
Revenue: Decreased 27.21% to $647.25 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: McDermott International Inc. reported adjusted EPS loss of $0.63 per share. By that measure, the company missed the mean analyst estimate of $0.03. It missed the average revenue estimate of $757.87 million.
Quoting Management: “As a management team, we are taking immediate and decisive actions to correct the weakness we have experienced in our project bidding and execution,” said Stephen M. Johnson, Chairman of the Board, President and Chief Executive Officer of McDermott. “We are driving a more disciplined culture within the Company, and we expect our operating leadership change announced separately today will add focus and urgency to our intentions. Although these problematic projects are expected to require some time to fully work through the system, the initiatives listed below reinforce our commitment to delivering an adequate return on our investors’ capital.”
Key Stats (on next page)…