We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Why Is Oceaneering International (OII) Down 7.3% Since Last Earnings Report?
Read MoreHide Full Article
It has been about a month since the last earnings report for Oceaneering International (OII - Free Report) . Shares have lost about 7.3% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Oceaneering International due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Oceaneering Q1 Earnings and Revenues Miss Estimates
Oceaneering International reported first-quarter 2024 adjusted profit of 14 cents per share, which missed the Zacks Consensus Estimate of 30 cents. This underperformance was due to lower-than-expected operating income from the Offshore Projects Group segment.
However, the bottom line outpaced the year-ago quarter’s reported figure of 5 cents. This can be attributed to year-over-year strong operating income from certain segments — Subsea Robotics, Manufactured Products, Integrity Management & Digital Solutions, and Aerospace and Defense Technologies.
Total revenues were $599.1 million, which missed the Zacks Consensus Estimate of $614 million. The top line increased approximately 11.6% from the year-ago quarter’s level of $537 million.
Segmental Information
Subsea Robotics: The unit provides remotely operated submersible vehicles for drill support, vessel-based inspection, subsea hardware installation, pipeline surveys and maintenance services.
Revenues totaled $186.9 million compared with the year-ago quarter’s figure of $169.2 million. The top line was below our projection of $195.4 million. The segment also reported an operating income of $44.2 million compared with $33.7 million a year ago. The figure was lower than our estimate of $45.5 million.
Manufactured Products: The segment focuses on the manufactured products business, theme park entertainment systems and automated guided vehicles.
Revenues amounted to $129.5 million, up substantially from the prior-year figure of $112.9 million. The top line beat our projection of $127.6 million. Moreover, the segment posted an operating profit of about $13.2 million in the first quarter, up from the year-ago quarter’s level of $11.3 million. The reported figure was above our estimate of $9.5 million. Meanwhile, the backlog rose to $597 million as of Mar 31, 2024, from $446 million as of Mar 31, 2023.
Offshore Projects Group: This segment involves Oceaneering’s former Subsea Projects unit, excluding survey services and global data solutions, and the service and rental business, excluding ROV tooling.
Revenues increased about 10.4% to $115.1 million from $104.3 million in the year-ago quarter. However, the figure was lower than our projection of $152.2 million. The unit’s operating income totaled $844,000 compared with the prior-year quarter’s level of $5.5 million. The figure was lower than our estimate of $17 million.
Integrity Management & Digital Solutions: This segment mainly covers Oceaneering’s Asset Integrity unit, along with its global data solutions business.
Revenues of $69.7 million increased from the year-ago quarter’s reported figure of $60.1. million. The figure also above our projection of $61 million. The segment reported an operating income of $3.6 million, up from the prior-year quarter’s figure of $3.1 million. The figure was below our estimate of $4.6 million.
Aerospace and Defense Technologies: The segment is engaged in Oceaneering’s government business, which focuses on defense subsea technologies, marine services and space systems.
Revenues totaled $98 million, up from $90.5 million recorded in the first quarter of 2023. The figure was also above our estimate of $61 million. The operating income rose to $12.8 million from $8.5 million in the year-ago quarter. The figure beat our estimate of $11.3 million.
Capital Expenditure & Balance Sheet
The capital expenditure in the first quarter, including acquisitions, totaled $25 million. As of Mar 31, 2024, OII had cash and cash equivalents worth $354.7 million and $461.6 million, respectively, along with a long-term debt of about $478.2 million. The debt-to-total capital was 43.2%.
Outlook
Oceaneering expects Offshore Projects Group activity levels and operating profitability to experience a significant increase during the second quarter of 2024. It also expects Subsea Robotics and Manufactured Products activity levels and operating profitability to rise during the same time frame.
However, Integrity Management & Digital Solutions and Aerospace and Defense Technologies activity levels are projected to remain flat, with operating profitability slightly lower than the year-ago period’s level. Unallocated Expenses are estimated to be in the $40 million range, aligning with the prior guidance. Overall, second-quarter 2024 operating results are expected to show improvement on a consolidated basis, with EBITDA in the range of $80-$90 million, reflecting a mid-teens percentage increase in revenues.
Oceaneering expects Subsea Robotics revenues to grow in the low to mid-teens percentage range for 2024. Additionally, OII projects a Manufactured Products book-to-bill ratio of 1.1-1.3 for the entire year.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.
VGM Scores
Currently, Oceaneering International has an average Growth Score of C, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Oceaneering International 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
Oceaneering International is part of the Zacks Oil and Gas - Field Services industry. Over the past month, Liberty Oilfield Services (LBRT - Free Report) , a stock from the same industry, has gained 0.4%. The company reported its results for the quarter ended March 2024 more than a month ago.
Liberty Oilfield Services reported revenues of $1.07 billion in the last reported quarter, representing a year-over-year change of -15%. EPS of $0.48 for the same period compares with $0.90 a year ago.
Liberty Oilfield Services is expected to post earnings of $0.65 per share for the current quarter, representing a year-over-year change of -25.3%. Over the last 30 days, the Zacks Consensus Estimate has changed -1%.
Liberty Oilfield Services has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of A.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Why Is Oceaneering International (OII) Down 7.3% Since Last Earnings Report?
It has been about a month since the last earnings report for Oceaneering International (OII - Free Report) . Shares have lost about 7.3% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Oceaneering International due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Oceaneering Q1 Earnings and Revenues Miss Estimates
Oceaneering International reported first-quarter 2024 adjusted profit of 14 cents per share, which missed the Zacks Consensus Estimate of 30 cents. This underperformance was due to lower-than-expected operating income from the Offshore Projects Group segment.
However, the bottom line outpaced the year-ago quarter’s reported figure of 5 cents. This can be attributed to year-over-year strong operating income from certain segments — Subsea Robotics, Manufactured Products, Integrity Management & Digital Solutions, and Aerospace and Defense Technologies.
Total revenues were $599.1 million, which missed the Zacks Consensus Estimate of $614 million. The top line increased approximately 11.6% from the year-ago quarter’s level of $537 million.
Segmental Information
Subsea Robotics: The unit provides remotely operated submersible vehicles for drill support, vessel-based inspection, subsea hardware installation, pipeline surveys and maintenance services.
Revenues totaled $186.9 million compared with the year-ago quarter’s figure of $169.2 million. The top line was below our projection of $195.4 million. The segment also reported an operating income of $44.2 million compared with $33.7 million a year ago. The figure was lower than our estimate of $45.5 million.
Manufactured Products: The segment focuses on the manufactured products business, theme park entertainment systems and automated guided vehicles.
Revenues amounted to $129.5 million, up substantially from the prior-year figure of $112.9 million. The top line beat our projection of $127.6 million. Moreover, the segment posted an operating profit of about $13.2 million in the first quarter, up from the year-ago quarter’s level of $11.3 million. The reported figure was above our estimate of $9.5 million. Meanwhile, the backlog rose to $597 million as of Mar 31, 2024, from $446 million as of Mar 31, 2023.
Offshore Projects Group: This segment involves Oceaneering’s former Subsea Projects unit, excluding survey services and global data solutions, and the service and rental business, excluding ROV tooling.
Revenues increased about 10.4% to $115.1 million from $104.3 million in the year-ago quarter. However, the figure was lower than our projection of $152.2 million. The unit’s operating income totaled $844,000 compared with the prior-year quarter’s level of $5.5 million. The figure was lower than our estimate of $17 million.
Integrity Management & Digital Solutions: This segment mainly covers Oceaneering’s Asset Integrity unit, along with its global data solutions business.
Revenues of $69.7 million increased from the year-ago quarter’s reported figure of $60.1. million. The figure also above our projection of $61 million. The segment reported an operating income of $3.6 million, up from the prior-year quarter’s figure of $3.1 million. The figure was below our estimate of $4.6 million.
Aerospace and Defense Technologies: The segment is engaged in Oceaneering’s government business, which focuses on defense subsea technologies, marine services and space systems.
Revenues totaled $98 million, up from $90.5 million recorded in the first quarter of 2023. The figure was also above our estimate of $61 million. The operating income rose to $12.8 million from $8.5 million in the year-ago quarter. The figure beat our estimate of $11.3 million.
Capital Expenditure & Balance Sheet
The capital expenditure in the first quarter, including acquisitions, totaled $25 million. As of Mar 31, 2024, OII had cash and cash equivalents worth $354.7 million and $461.6 million, respectively, along with a long-term debt of about $478.2 million. The debt-to-total capital was 43.2%.
Outlook
Oceaneering expects Offshore Projects Group activity levels and operating profitability to experience a significant increase during the second quarter of 2024. It also expects Subsea Robotics and Manufactured Products activity levels and operating profitability to rise during the same time frame.
However, Integrity Management & Digital Solutions and Aerospace and Defense Technologies activity levels are projected to remain flat, with operating profitability slightly lower than the year-ago period’s level. Unallocated Expenses are estimated to be in the $40 million range, aligning with the prior guidance. Overall, second-quarter 2024 operating results are expected to show improvement on a consolidated basis, with EBITDA in the range of $80-$90 million, reflecting a mid-teens percentage increase in revenues.
Oceaneering expects Subsea Robotics revenues to grow in the low to mid-teens percentage range for 2024. Additionally, OII projects a Manufactured Products book-to-bill ratio of 1.1-1.3 for the entire year.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.
VGM Scores
Currently, Oceaneering International has an average Growth Score of C, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Oceaneering International 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
Oceaneering International is part of the Zacks Oil and Gas - Field Services industry. Over the past month, Liberty Oilfield Services (LBRT - Free Report) , a stock from the same industry, has gained 0.4%. The company reported its results for the quarter ended March 2024 more than a month ago.
Liberty Oilfield Services reported revenues of $1.07 billion in the last reported quarter, representing a year-over-year change of -15%. EPS of $0.48 for the same period compares with $0.90 a year ago.
Liberty Oilfield Services is expected to post earnings of $0.65 per share for the current quarter, representing a year-over-year change of -25.3%. Over the last 30 days, the Zacks Consensus Estimate has changed -1%.
Liberty Oilfield Services has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of A.