Oceaneering International (NYSE:OII) recently reported a Q3 2023 adjusted profit of 38 cents per share, surpassing estimates due to strong performance in certain segments. The company's total revenues for the quarter amounted to $635.2 million, marking a 13.5% year-over-year increase. Despite this growth, revenues fell short of expectations due to decreased sales in the Offshore Projects Group segment.
The Subsea Robotics unit and the Manufactured Products segment both reported increased revenues and operating income, although the latter did not meet projections. The Offshore Projects Group saw a slight drop in revenues but exceeded expectations with an operating income of $26.7 million.
Other segments such as the Integrity Management & Digital Solutions segment and the Aerospace and Defense Technologies segment also reported increased revenues and operating income.
OII's capital expenditure for Q3 2023 was recorded at $25.9 million. The company's cash and equivalents were valued at over $556 million, while its long-term debt stood at approximately $568.5 million. Notably, the company's backlog rose to $556 million during this period.
Looking ahead to Q4 2023, Oceaneering anticipates a decline in EBITDA despite expecting relatively flat revenues. In light of these expectations, the company has provided revised financial estimates.
InvestingPro Insights
According to real-time data from InvestingPro, Oceaneering International has a market cap of $2.34 billion. The company's adjusted P/E ratio as of Q3 2023 stands at 29.33, suggesting a high earnings multiple. The revenue growth for the last 12 months as of Q3 2023 was 15.51%, indicating a solid performance.
InvestingPro Tips highlight that Oceaneering International has consistently increasing earnings per share and its net income is expected to grow this year. Despite the stock price movements being quite volatile, the company has seen a large price uptick over the last six months. However, it's worth noting that the company does not pay a dividend to shareholders.
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