Engineering and construction firm
) reported weak first-quarter 2013 profits, owing to operating
losses in some regions and increased expenses. This was partially
offset by stronger operating income in Asia Pacific region.
Earnings per share from continuing operations came in at 9 cents,
behind the Zacks Consensus Estimate of 15 cents.
Moreover, the Texas-based engineering-to-project management
service provider's per share profit was significantly lower than
25 cents earned in the first quarter of 2012. The quarter's
result was negatively influenced by lesser asset utilization and
McDermott generated revenues of $807.5 million in the quarter, up
11.0% from the first quarter of 2012 and also ahead of our
expectation of $733.0 million. Increased fabrication activity in
the Atlantic region and better operations in the Middle East and
Asia Pacific regions boosted the company's results.
On a reported basis, McDermott registered operating income of
$53.0 million (down 33.8% year over year) during the quarter.
Total costs and expenses also increased 16.5% from the
corresponding period last year to $750.3 million.
At the end of the first quarter of 2013, McDermott had a backlog
of $5,298.0 million, compared with $5,806.6 million a year ago.
As of Dec 31, 2012, the backlog was $5,067.2 million.
As of Mar 31, 2013, McDermott had cash/cash equivalents of $461.5
million and long-term debt (including current maturities) of
approximately $101.2 million (representing a
debt-to-capitalization ratio of approximately 4.9%).
McDermott currently retains a Zacks Rank #4 (Sell).
However, there are some other energy firms that offer value
and are worth buying now. These include
EPL Oil & Gas Inc.
) with a Zacks Rank #1 (Strong Buy), and
McMoRan Exploration Co.
Stone Energy Corporation
) with a Zacks Rank #2 (Buy).
EPL OIL&GAS INC (EPL): Free Stock Analysis
MCDERMOTT INTL (MDR): Free Stock Analysis
MCMORAN EXPLOR (MMR): Free Stock Analysis
STONE ENERGY CP (SGY): Free Stock Analysis
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