TechnipFMC plc FTI is scheduled to release its fourth-quarter fiscal 2025 results on Feb. 19, before the market opens. The Zacks Consensus Estimate for earnings is pegged at 51 cents per share on revenues of $2.55 billion.
Let us examine the key drivers that might have impacted FTI's performance in the to-be-reported quarter. Before that, it is worth taking a look at the company’s performance in the last reported quarter.
Highlights of FTI’s Q3 Earnings & Surprise History
In the last reported quarter, the Houston, TX-based oil and gas equipment and services company posted adjusted earnings of 75 cents per share, which beat the Zacks Consensus Estimate of 65 cents, primarily due to strong results in the Subsea segment. Moreover, the company’s revenues of $2.6 billion beat the Zacks Consensus Estimate by 1.2%.
FTI’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed in the other, delivering an average surprise of 20.16%.
This is depicted in the graph below:
TechnipFMC plc Price and EPS Surprise
TechnipFMC plc price-eps-surprise | TechnipFMC plc Quote
Trend in FTI’s Estimate Revision
The Zacks Consensus Estimate for fourth-quarter fiscal 2025 earnings has remained unchanged over the past seven days. The estimated figure indicates a 5.56% year-over-year decrease. However, the Zacks Consensus Estimate for revenues implies a 7.58% increase from the year-ago period.
Factors to Consider Ahead of FTI’s Q4 Results
FTI primarily makes money by providing subsea equipment, systems and technologies used in offshore oil and gas production, such as subsea trees, wellheads and control systems. It also earns revenues from integrated engineering, procurement, construction and installation services for large offshore projects. FTI’s revenues are likely to have improved in the quarter to be reported. The Zacks Consensus Estimate for fourth-quarter revenues implies an increase from the year-ago quarter’s level. This can be attributed to the strong revenue contribution from the Subsea segment.
TechnipFMC's Subsea segment helps oil and gas companies find and extract oil and gas under the sea. The company designs, builds and installs the equipment needed for this and provides services to keep it working. The segment’s revenues are expected to increase 8.7% year over year, totaling $2.2 billion.
We expect TechnipFMC to navigate typical fourth-quarter seasonality better than its peers due to the differentiated business model and improved operational leverage. The combination of a $16.8 billion backlog in the third quarter and the ongoing industrialization of its Subsea business might have acted as a tailwind to fourth-quarter earnings.
On a bearish note, the increase in FTI’s costs might have dented its to-be-reported bottom line. FTI’s third-quarter total costs and expenses rose 8.8% from the year-ago quarter’s figure, and this upward trajectory is expected to have persisted in the quarter to be reported. The upward cost trajectory might have attributed to the ongoing inflationary environment and tight labor market.
What Does Our Model Predict for FTI?
Our proven model predicts an earnings beat for FTI this time. A stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to beat earnings. This is exactly the case here.
Earnings ESP of FTI: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, for this company is +1.61%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
FTI’s Zacks Rank: FTI currently carries a Zacks Rank #2.
Other Stocks With the Favorable Combination
Here are some other firms from the other space that you may want to consider, as these, too, have the right combination of elements to post an earnings beat this reporting cycle.
Domino's Pizza DPZ is a global quick-service restaurant company that operates and franchises pizza delivery and carryout stores across more than 90 markets worldwide. The company has an Earnings ESP of +2.88% and a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Domino's Pizza is scheduled to release earnings on Feb. 23. DPZ’s earnings beat the Zacks Consensus Estimate in two of the four quarters and missed in the other two, delivering an average surprise of 1.07%.
Allison Transmission Holdings ALSN has an Earnings ESP of +7.69% and a Zacks Rank #1 at present. The firm is scheduled to release earnings on Feb. 23. ALSN’s earnings missed the Zacks Consensus Estimate in three of the trailing four quarters and beat in one, delivering an average negative surprise of 1.26%.
Allison Transmission Holdings is a U.S.-based designer and manufacturer of fully automatic transmissions and hybrid propulsion systems for medium and heavy-duty commercial and defense vehicles, serving customers in more than 150 countries.
Axsome Therapeutics AXSM has an Earnings ESP of +30.00% and a Zacks Rank #3 at present. The firm is scheduled to release earnings on Feb. 23. AXSM’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed in one, delivering an average surprise of 8.47%.
Axsome Therapeutics is a U.S. biopharmaceutical company focused on developing and commercializing novel therapies for central nervous system (“CNS”) disorders, including depression, migraine and narcolepsy, with products like Auvelity and Sunosi on the market and a pipeline of additional CNS treatments.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
