Oil drilling equipment maker
FMC Technologies Inc.
) reported first quarter diluted earnings per share of 43 cents,
below the Zacks Consensus Estimate of 46 cents. The
weaker-than-expected results were mainly due to tepid fluid
However, FTI's per share profits came ahead of the first quarter
2012 level of 41 cents, amid strength in subsea systems orders.
Revenues at $1,646.0 million were up 17.9% year over year and
also came above the Zacks Consensus Estimate of $1,583.0 million.
FTI is particularly well positioned in the subsea technologies
market, where it competes with larger rival
Cameron International Corp.
). The segment revenue for the most recent quarter was $1,092.2
million, an increase of 22.0% from the first quarter of 2012,
buoyed by a rise in sales of subsea systems.
Operating profit came in at $99.4 million, up 32.4% year over
year. The positive comparison reflects higher sales and better
Segment revenues were up 11.6% year-over-year to $421.7 million.
The main reasons for the improved performance can be attributed
to the sales ramp-up in the international surface wellhead
business, together with contribution from completion services
But FTI's segment operating profit - at $57.3 million - decreased
26.5% from the year-ago period, hamstrung by depressed North
American fluid control activity.
The segment revenue for the Jan-Mar period was $135.6 million,
slightly below the first quarter 2012 level of $137.0 million.
Operating profit improved to $10.1 million from $9.3 million
earned a year ago, helped by better showing in loading and
As of Mar 31, 2013, FTI's total backlog (including intercompany
eliminations) was $5,426.8 million, compared to $5,599.2 million
a year ago. Of this, backlog for Subsea Technologies was $4,621.6
million, while Surface Technologies and Energy Infrastructure
backlog finished the quarter at $522.3 million and $291.9
During the quarter, FTI spent $78.9 million on capital programs.
As of Mar 31, 2013, the company had cash and cash equivalents of
$236.6 million and long-term debt (including current portion) of
$1,680.8 million, with a debt-to-capitalization ratio of 47.3%.
Management reiterated its 2013 earnings per share guidance range
FTI 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
Natural Gas Services Group Inc.
USA Compression Partners L.P.
) as good buying opportunities. These oilfield machineries and
equipment suppliers - sporting a Zacks Rank #2 (Buy) - have solid
secular growth stories with potential to rise from current
CAMERON INTL (CAM): Free Stock Analysis
FMC TECH INC (FTI): Free Stock Analysis
NATURAL GAS SVC (NGS): Free Stock Analysis
USA COMPRESSION (USAC): Free Stock Analysis
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