Offshore oil and gas-focused engineering and construction firm, McDermott International Inc. (NYSE:MDR) reported earnings of 9 cents per share in third-quarter 2016, which compared favorably with the Zacks Consensus Estimate of a loss of 6 cents. Improved execution of projects and operational profitability led to the outperformance. The bottom line was flat with the year-ago quarter earnings.
McDermott generated revenues of about $559 million in the quarter as against $806 million in the prior-year quarter. The top line also came in below the Zacks Consensus Estimate of $603 million.
Total Expenses
Total costs and expenses decreased 33.2% from $771.9 million in the year-ago quarter to about $515.5 million.
Backlog
At the end of the third quarter, McDermott had a backlog of $3,916.2 million as against $4,420.6 million a year ago. While 79% of the total backlog is related to offshore operations, the remaining 21% pertains to subsea operations.
Balance Sheet
Capital expenditure for McDermott was about $26.7 million during the quarter.
MCDERMOTT INTL Price, Consensus and EPS Surprise
As of Sep 30, 2016, McDermott had cash and cash equivalents of $500.1 million and long-term debt of approximately $704.3 million. This represents a debt-to-capitalization ratio of about 30.6%.
Zacks Rank and Key Stock Picks
Houston, TX-based McDermott currently carries a Zacks Rank #2 (Buy).
Other well-ranked players from the broader energy sector include Enviva Partners, LP (NYSE:EVA) , Ultra Petroleum Corp. (OTC:UPLMQ) and CONE Midstream Partners LP (NYSE:CNNX) . All these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
In the last four quarters, Enviva Partners posted an average positive earnings surprise of 0.19%.
Ultra Petroleum, on the other hand, posted an average positive earnings surprise of 65.91% in the last four quarters.
In the current quarter, CONE Midstream Partners posted a positive earnings surprise of 19.38%.
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CONE MIDSTREAM (CNNX): Free Stock Analysis Report
MCDERMOTT INTL (MDR): Free Stock Analysis Report
ENVIVA PARTNERS (EVA): Free Stock Analysis Report
ULTRA PETRO CP (UPLMQ): Free Stock Analysis Report
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