Oil drilling equipment maker
Cameron International Corp.
) reported strong fourth quarter results, propped up by robust
performance from its 'Drilling & Production Systems' segment.
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The Houston, TX-based company came out with earnings per share -
excluding charges - of $1.00, ahead of the Zacks Consensus
Estimate of 96 cents and the year-ago adjusted profit of 95
Cameron's quarterly revenue, at $2,937.5 million, was up 21.1%
year over year and was above the Zacks Consensus Estimate of
For its fiscal year ended Dec 31, 2013, Cameron reported adjusted
profit of $3.30 per share, overshooting the Zacks Consensus
Estimate of $3.25 per share and up from $3.13 per share in 2012.
Revenues of $9,838.4 million were 15.7% up from the year-ago
period, while managing to beat the Zacks Consensus Estimate of
Drilling & Production Systems (DPS):
Revenues for the DPS segment totaled $1,943.3 million in the
fourth quarter, an increase of 39.4% from the year-ago period,
while the DPS segment EBITDA rose 33.5% year over year to $318.7
million. The higher profitability could be attributed to strength
in its subsea business.
Valves & Measurement (V&M):
Quarterly revenues in Cameron's V&M segment totaled $527.5
million, down 5.3% year over year. The segment EBITDA decreased
10.0% year over year to $114.1 million. The negative comparisons
can be attributed to slightly tepid infrastructure activity
levels throughout the world.
Process & Compression Systems (PCS):
Revenues in the PCS segment fell 1.8% year over year to $466.7
million. The segment EBITDA witnessed a year-over-year
deterioration of 5.8% to $73.0 million, on the back of
During the quarter, Cameron received orders totaling $3,344.6
million, down 2.9% year over year, reflecting a 13.0% drop in the
DPS segment. The composition of current order booking is 66% for
DPS, 16% for V&M and 18% for PCS.
As of Dec 31, 2013, Cameron's total backlog stood at a record
$11,537.6 million, up significantly from the year-earlier level
of $8,597.2 million, driven by sharply higher backlog in the DPS
Capital Expenditure & Balance Sheet
During the quarter, Cameron's capital expenditures amounted to
$214.1 million. As of Dec 31, 2013, cash and cash equivalents
stood at $1,812.9 million, while long-term debt was $2,562.8
million (with debt-to-capitalization ratio of 27.0%).
Cameron management provided its 2014 earnings per share guidance
in the $3.60-$4.00 range, while the first quarter profitability
is likely to be between 70 cents and 75 cents.
Zacks Rank & Stock Picks
Cameron - which counts
FMC Technologies Inc.
) as its competitor - currently carries a Zacks Rank #3 (Hold),
implying that it is expected to perform in line with the broader
U.S. equity market over the next one to three months.
Meanwhile, one can look at
Swift Energy Co.
Warren Resources Inc.
). These U.S. upstream energy operators - sporting a Zacks Rank
#1 (Strong Buy) - have recorded solid growth and have the
potential to rise significantly from the current levels.