McDermott International Earnings: Here’s Why Investors are Selling Shares Now

McDermott International Inc. (NYSE:MDR) delivered a profit and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 4.81%.

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McDermott International Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 64% to $0.09 in the quarter versus EPS of $0.25 in the year-earlier quarter.

Revenue: Rose 10.97% to $807.5 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: McDermott International Inc. reported adjusted EPS income of $0.09 per share. By that measure, the company missed the mean analyst estimate of $0.15. It beat the average revenue estimate of $748.58 million.

Quoting Management: “Although the final phases of an otherwise well-executed project in the Middle East challenged us this quarter, I am pleased with our successful completion of a key project in the Asia Pacific segment,” said Stephen M. Johnson, Chairman of the Board, President and Chief Executive Officer of McDermott. “With the sale of the DB 26 and our expansion of our subsea engineering talent through the acquisition of DeepSea group, McDermott is making steady progress on its strategic transformation. We remain focused on winning work for which we can provide a cost-effective solution and execute successfully for our customers and for our shareholders.”

Key Stats (on next page)…

Revenue decreased 18.92% from $995.95 million in the previous quarter. EPS decreased 47.06% from $0.17 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.21 to a profit $0.16. For the current year, the average estimate has moved down from a profit of $0.87 to a profit of $0.71 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at]