Offshore oil and gas-focused engineering and construction firm, McDermott International Inc.MDR reported stellar third-quarter 2015 results. New contracts and improved execution of projects led to the outperformance. Shares of McDermott soared over 14% in the after-hours trading session following the results.
The company reported adjusted earnings of 9 cents per share, which compared favorably with the year-ago quarter loss of 14 cents. The Zacks Consensus Estimate was of a loss of 5 cents for the quarter.
McDermott International Inc. (MDR) - Earnings Surprise | FindTheCompany
McDermott generated revenues of about $806 million in the quarter, which surged from the prior-year quarter level of $414.6 million. The top line also came in significantly above the Zacks Consensus Estimate of $780 million.
Total Expenses
Total costs and expenses increased a massive 83% from that in the year-ago quarter to about $772 million.
Backlog
At the end of the third quarter, McDermott had a backlog of $4,420.6 million, up from $3,979.7 million a year ago. Of the total backlog, 73% is related to offshore operations while the remaining 27% pertains to subsea operations.
Balance Sheet
Capital expenditure for McDermott during the quarter was about $18.1 million.
As of Sep 30, 2015, McDermott had cash and cash equivalents of $631.4 million and long-term debt (including current maturities) of approximately $851.2 million. This represents a debt-to-capitalization ratio of about 35.4%.
Other News
McDermott has been awarded an engineering, procurement, construction and installation (EPCI) contract offshore Qatar by RasGas Company Limited. The company expects work on the project to be completed by the third quarter of 2017.
Zacks Rank and Key Stock Picks
Houston, TX-based McDermott currently carries a Zacks Rank #3 (Hold).
Some better-ranked players from the oilfield machinery and equipment industry are Matrix Service Company MTRX , PowerSecure International, Inc. POWR and Profire Energy, Inc. PFIE . While Matrix sports a Zacks Rank #1 (Strong Buy), both PowerSecure and Profire Energy have a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
MATRIX SERVICE (MTRX): Free Stock Analysis Report
MCDERMOTT INTL (MDR): Free Stock Analysis Report
PROFIRE ENERGY (PFIE): Free Stock Analysis Report
POWERSECURE INT (POWR): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Latest Markets Videos
Explore Markets
ExploreMost Popular
- Stimulus Update: MIllions Will Get a Stimulus Check in June. Are You One of Them?
- Is the Stock Market Open on Independence Day 2022?
- Social Security Checks Could Soar in 2023: Here's How Much Extra Seniors Might Receive
- Used Car Prices Are Starting to Drop From All-Time Highs. Is the Worst Behind Us?