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FMC Technologies (FTI) Up 14.4% Since Last Earnings Report: Can It Continue?
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It has been about a month since the last earnings report for FMC Technologies (FTI - Free Report) . Shares have added about 14.4% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is FMC Technologies due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
TechnipFMC Posts Wider Than Expected Q1 Loss
TechnipFMC reported a first-quarter 2022 adjusted loss of 3 cents per share, in line with the year-ago quarter but wider than the Zacks Consensus Estimate of a loss of 1 cent. This underperformance was due to lower-than-anticipated earnings from the Subsea and Surface Technologies segments.
Adjusted EBITDA from the Subsea unit totaled $129 million, falling short of the Zacks Consensus Estimate of $132 million, while the Surface Technologies unit’s profit came in at $22 million, lagging the Zacks Consensus Estimate of $26.36 million.
For the quarter ended Mar 31, this seabed-to-surface oilfield equipment and services provider’s revenues of $1.56 billion missed the Zacks Consensus Estimate by 1.58% and also declined from the year-ago quarter’s $1.63 billion.
Giving some respite to investors, FTI’s first-quarter inbound orders increased 23.3% from the year-ago period’s level to almost $2.2 billion, reflecting strong revenue visibility.
Also, the company’s backlog rose. As of March end, TechnipFMC’s order backlog stood at $8.89 billion, improving about 23.2% from the 2021 reading.
Segment Analysis
Subsea: Revenues in the quarter under review were $1.29 billion, down 7% from the year-ago sales figure of $1.39 billion, due to reduced activities in Africa. However, adjusted EBITDA was reported at $129 million, down by about 4.5% from the year-ago quarter’s level, due to higher depreciation and amortization. The quarterly inbound orders jumped 24.7% to $1.89 billion, while the backlog rose 12.9%.
Surface Technologies: This smaller segment of the company recorded revenues of $266.7 million, up 8.6% year over year, primarily due to growth in North America, which benefited from the continued increase in drilling and completion activity. However, the unit’s adjusted EBITDA decreased by 18.2% to $22 million due to lower international revenues and the impacts of the manufacturing transition. The segment’s inbound orders rose 43.3%, while the quarter-end backlog increased 216.4%.
Financials
In the reported quarter, TechnipFMC spent $27.3 million on capital programs. As of Mar 31, the company had cash and cash equivalents of $1.2 billion and long-term debt of $1.72 billion, with a debt-to-capitalization of 33%.
2022 Outlook
TechnipFMC retained revenue expectations from the Subsea unit in the $5.2-$5.6 billion range for 2022 and maintained the 2022 Surface Technologies unit revenue guidance between $1.15 and $1.30 billion and an EBITDA margin in the range of 11.
This London-based oilfield services provider maintained that its free cash flow generation projection for 2022 is expected in the $100-$250 million band. The company guided to an annual capital expenditure view of $230 million and net interest expenses between $105 and $115 million.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month.
The consensus estimate has shifted -24.71% due to these changes.
VGM Scores
At this time, FMC Technologies has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. However, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, FMC Technologies has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
FMC Technologies belongs to the Zacks Oil and Gas - Field Services industry. Another stock from the same industry, Schlumberger (SLB - Free Report) , has gained 16.4% over the past month. More than a month has passed since the company reported results for the quarter ended March 2022.
Schlumberger reported revenues of $5.96 billion in the last reported quarter, representing a year-over-year change of +14.2%. EPS of $0.34 for the same period compares with $0.21 a year ago.
For the current quarter, Schlumberger is expected to post earnings of $0.39 per share, indicating a change of +30% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
Schlumberger has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.
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FMC Technologies (FTI) Up 14.4% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for FMC Technologies (FTI - Free Report) . Shares have added about 14.4% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is FMC Technologies due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
TechnipFMC Posts Wider Than Expected Q1 Loss
TechnipFMC reported a first-quarter 2022 adjusted loss of 3 cents per share, in line with the year-ago quarter but wider than the Zacks Consensus Estimate of a loss of 1 cent. This underperformance was due to lower-than-anticipated earnings from the Subsea and Surface Technologies segments.
Adjusted EBITDA from the Subsea unit totaled $129 million, falling short of the Zacks Consensus Estimate of $132 million, while the Surface Technologies unit’s profit came in at $22 million, lagging the Zacks Consensus Estimate of $26.36 million.
For the quarter ended Mar 31, this seabed-to-surface oilfield equipment and services provider’s revenues of $1.56 billion missed the Zacks Consensus Estimate by 1.58% and also declined from the year-ago quarter’s $1.63 billion.
Giving some respite to investors, FTI’s first-quarter inbound orders increased 23.3% from the year-ago period’s level to almost $2.2 billion, reflecting strong revenue visibility.
Also, the company’s backlog rose. As of March end, TechnipFMC’s order backlog stood at $8.89 billion, improving about 23.2% from the 2021 reading.
Segment Analysis
Subsea: Revenues in the quarter under review were $1.29 billion, down 7% from the year-ago sales figure of $1.39 billion, due to reduced activities in Africa. However, adjusted EBITDA was reported at $129 million, down by about 4.5% from the year-ago quarter’s level, due to higher depreciation and amortization. The quarterly inbound orders jumped 24.7% to $1.89 billion, while the backlog rose 12.9%.
Surface Technologies: This smaller segment of the company recorded revenues of $266.7 million, up 8.6% year over year, primarily due to growth in North America, which benefited from the continued increase in drilling and completion activity. However, the unit’s adjusted EBITDA decreased by 18.2% to $22 million due to lower international revenues and the impacts of the manufacturing transition. The segment’s inbound orders rose 43.3%, while the quarter-end backlog increased 216.4%.
Financials
In the reported quarter, TechnipFMC spent $27.3 million on capital programs. As of Mar 31, the company had cash and cash equivalents of $1.2 billion and long-term debt of $1.72 billion, with a debt-to-capitalization of 33%.
2022 Outlook
TechnipFMC retained revenue expectations from the Subsea unit in the $5.2-$5.6 billion range for 2022 and maintained the 2022 Surface Technologies unit revenue guidance between $1.15 and $1.30 billion and an EBITDA margin in the range of 11.
This London-based oilfield services provider maintained that its free cash flow generation projection for 2022 is expected in the $100-$250 million band. The company guided to an annual capital expenditure view of $230 million and net interest expenses between $105 and $115 million.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month.
The consensus estimate has shifted -24.71% due to these changes.
VGM Scores
At this time, FMC Technologies has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. However, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, FMC Technologies has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
FMC Technologies belongs to the Zacks Oil and Gas - Field Services industry. Another stock from the same industry, Schlumberger (SLB - Free Report) , has gained 16.4% over the past month. More than a month has passed since the company reported results for the quarter ended March 2022.
Schlumberger reported revenues of $5.96 billion in the last reported quarter, representing a year-over-year change of +14.2%. EPS of $0.34 for the same period compares with $0.21 a year ago.
For the current quarter, Schlumberger is expected to post earnings of $0.39 per share, indicating a change of +30% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
Schlumberger has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.