Energy Sector Update for 04/24/2018: MDR,WFT,HUBB

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Top Energy Stocks

XOM -0.01%

CVX +0.88%

COP +0.82%

SLB +0.19%

OXY +0.60%

Energy stocks still were mostly higher, falling back from their prior highs. At last look, the NYSE Energy Sector Index Tuesday was rising almost 0.3% while shares of energy companies in the S&P 500 were up just 0.1% as a group. West Texas Intermediate crude oil for June delivery was falling 8 cents to $68.56 per barrel in New York while the global benchmark Brent crude June contract was advancing 10 cents to $74.81 per barrel. May gas futures were 3 cents higher at $2.77 per 1 million BTU. Among energy-related ETFs, United States Oil was down nearly 0.7% while United States Natural Gas was increasing almost 1.1%. The Philadelphia oil-service sector index was up more than 0.5%.

In industry news:

Oil prices were mixed Tuesday afternoon after earlier rising to new 40-month highs amid concerns US President Donald Trump will soon walk away from the international accord limiting Iran's nuclear program. The White House has until May 12 to decide whether the United States will abandon the pact and impose sanctions on the country. Continuing export restrictions from OPEC and Russia, removing 1.8 million barrel per day from the market, also were supporting prices.

Among energy stocks moving on news:

+ McDermott International ( MDR ) was extending its gains for a second day on Tuesday after the oilfield services company reported Q1 net income more than doubling its year-ago profit and topping Wall Street estimates. Excluding one-time items, it earned $0.17 per share during the January-to-March fiscal period, up from $0.08 per share during the same quarter last year and surpassing the Capital IQ consensus by $0.01 per share. Revenue also rose, climbing to $607.8 million from $519.4 million last year and narrowly beating the $607.5 million Street view. The company also is projecting FY18 earnings and revenue straddling analyst expectations, modelling per-share earnings in a range of $0.42 to $0.52 on between $3.1 billion to $3.3 billion in revenue. Analysts, on average, are looking for FY18 net income of $0.49 per share on $3.16 billion in revenue.

In other sector news

+ Weatherford International ( WFT ) jumped over 15% higher on Tuesday after reporting a smaller-than-expected Q1 net loss. Excluding one-time items, the oilfield-services company recorded a non-GAAP net loss of $0.19 per share during the three months ended March 31, paring a $0.32 per share loss during the same quarter last year and beating the Capital IQ consensus expecting a net loss of $0.23 per share. Revenue grew to $1.42 billion from $1.39 billion during the year-ago quarter but lagged the $1.45 billion analyst mean.

+ Hubbell Inc. ( HUBB ) was hanging on to a small gain in Tuesday trading after the oil-tanker company reported adjusted Q1 net income and sales exceeding analyst projections. Excluding one-time items, Hubbell earned $1.39 per share compared with $1.13 per share during the year-ago quarter and topped the Capital IQ consensus by $0.03 per share. Net sales jumped to $991.2 million from $852.3 million last year, also beating the $976.0-million consensus of four analysts polled by Capital IQ. The company also raised its forecast expecting FY18 end-market growth in a range of 5% to 7%, compared with 3% to 5% in its prior guidance. It also continues to see non-GAAP earnings this year between $6.95 to $7.35 per share, in-line with the analyst mean looking a $7.07 per share adjusted profit.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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This article appears in: Investing , Energy
Referenced Symbols: MDR , WFT , HUBB

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