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Oceaneering (OII) to Report Q2 Earnings: What's in Store?
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Oceaneering International, Inc. (OII - Free Report) is set to report second-quarter earnings on Jul 24, after the closing bell. The Zacks Consensus Estimate for earnings is pegged at 37 cents per share and revenues at $665.18 million.
Let’s delve into the factors that might have influenced OII’s performance in the to-be-reported quarter. Before that, it’s worth taking a look at the company’s performance in the last reported quarter.
Highlights of Q1 Earnings
In the last reported quarter, Houston, TX-based, oil and gas equipment and services company’s earnings missed the consensus mark. OII reported an adjusted profit of 14 cents per share, which was 16 cents lower than the Zacks Consensus Estimate. This was due to lower-than-expected operating income from the Offshore Projects Group segment.
Revenues of $599.1 million also missed the Zacks Consensus Estimate by 2.4%. OII’s earnings beat the Zacks Consensus Estimate in one of the trailing four quarters and missed the mark in three, delivering an average negative earnings surprise of 17.5%.
Oceaneering International, Inc. Price and EPS Surprise
The Zacks Consensus Estimate for second-quarter 2024 earnings has witnessed no upward revision and a downward movement in the past 30 days. The estimated figure indicates a 105.56% year-over-year increase. The Zacks Consensus Estimate for revenues implies an increase of 11.25% from the year-ago period.
Factors to Consider
OII's revenues are likely to have improved in the quarter to be reported. Our model predicts second-quarter revenues to increase to $676.4 million from the year-ago quarter’s level of $597.9 million. This can be attributed to the robust performance of the energy services and products, including Subsea Robotics, Manufactured Products, Offshore Projects Group and Integrity Management & Digital Solutions segments.
Based on our model estimates, the Subsea Robotics segment likely grew by 11.4%, the Manufactured Products segment by 3.3%, the Offshore Projects Group segment by 12.25% and the Integrity Management & Digital Solutions segment by 30.2%, from the year-ago quarter’s level.
On the other hand, the company’s cost of services and products is projected to have reached $676.4 million in the second quarter, which is 13.1% up from the year-ago period’s level.The rise in material prices and labor costs could potentially impact OII's overall profitability despite the revenue growth. Additionally, its selling, general and administrative expenses are also expected to have increased from $51.9 million to $60.5 million in the same time frame.
What Does Our Model Say?
The proven Zacks model does not conclusively predict an earnings beat for Oceaneering International this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that’s not the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, for this company is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: OII currently carries a Zacks Rank #3.
Stocks to Consider
Here are some firms that you may want to consider, as these have the right combination of elements to post an earnings beat.
CTRA has a trailing four-quarter average positive earnings surprise of 9.81%. Valued at around $20.37 billion, CTRA’s shares have risen 2.1% in a year.
Expro Group Holdings (XPRO - Free Report) currently has an Earnings ESP of +2.04% and a Zacks Rank #2. The firm is scheduled to release earnings on Jul 25.
XPRO has a trailing four-quarter average earnings surprise of 78.41%. Valued at around $2.68 billion, XPRO’s shares have risen 10.9% in a year.
Pembina Pipeline (PBA - Free Report) has an Earnings ESP of +9.09% and a Zacks Rank #2 at present. The firm is scheduled to release earnings on Aug 8.
PBA has a trailing four-quarter average earnings surprise of 10.91%. Valued at around $21.79 billion, PBA’s shares have risen 21.8% in a year.
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Oceaneering (OII) to Report Q2 Earnings: What's in Store?
Oceaneering International, Inc. (OII - Free Report) is set to report second-quarter earnings on Jul 24, after the closing bell. The Zacks Consensus Estimate for earnings is pegged at 37 cents per share and revenues at $665.18 million.
Let’s delve into the factors that might have influenced OII’s performance in the to-be-reported quarter. Before that, it’s worth taking a look at the company’s performance in the last reported quarter.
Highlights of Q1 Earnings
In the last reported quarter, Houston, TX-based, oil and gas equipment and services company’s earnings missed the consensus mark. OII reported an adjusted profit of 14 cents per share, which was 16 cents lower than the Zacks Consensus Estimate. This was due to lower-than-expected operating income from the Offshore Projects Group segment.
Revenues of $599.1 million also missed the Zacks Consensus Estimate by 2.4%. OII’s earnings beat the Zacks Consensus Estimate in one of the trailing four quarters and missed the mark in three, delivering an average negative earnings surprise of 17.5%.
Oceaneering International, Inc. Price and EPS Surprise
Oceaneering International, Inc. price-eps-surprise | Oceaneering International, Inc. Quote
Trend in Estimate Revision
The Zacks Consensus Estimate for second-quarter 2024 earnings has witnessed no upward revision and a downward movement in the past 30 days. The estimated figure indicates a 105.56% year-over-year increase. The Zacks Consensus Estimate for revenues implies an increase of 11.25% from the year-ago period.
Factors to Consider
OII's revenues are likely to have improved in the quarter to be reported. Our model predicts second-quarter revenues to increase to $676.4 million from the year-ago quarter’s level of $597.9 million. This can be attributed to the robust performance of the energy services and products, including Subsea Robotics, Manufactured Products, Offshore Projects Group and Integrity Management & Digital Solutions segments.
Based on our model estimates, the Subsea Robotics segment likely grew by 11.4%, the Manufactured Products segment by 3.3%, the Offshore Projects Group segment by 12.25% and the Integrity Management & Digital Solutions segment by 30.2%, from the year-ago quarter’s level.
On the other hand, the company’s cost of services and products is projected to have reached $676.4 million in the second quarter, which is 13.1% up from the year-ago period’s level.The rise in material prices and labor costs could potentially impact OII's overall profitability despite the revenue growth. Additionally, its selling, general and administrative expenses are also expected to have increased from $51.9 million to $60.5 million in the same time frame.
What Does Our Model Say?
The proven Zacks model does not conclusively predict an earnings beat for Oceaneering International this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that’s not the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, for this company is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: OII currently carries a Zacks Rank #3.
Stocks to Consider
Here are some firms that you may want to consider, as these have the right combination of elements to post an earnings beat.
Coterra Energy (CTRA - Free Report) has an Earnings ESP of +3.57% and a Zacks Rank #2 at present. The firm is scheduled to release earnings on Aug 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
CTRA has a trailing four-quarter average positive earnings surprise of 9.81%. Valued at around $20.37 billion, CTRA’s shares have risen 2.1% in a year.
Expro Group Holdings (XPRO - Free Report) currently has an Earnings ESP of +2.04% and a Zacks Rank #2. The firm is scheduled to release earnings on Jul 25.
XPRO has a trailing four-quarter average earnings surprise of 78.41%. Valued at around $2.68 billion, XPRO’s shares have risen 10.9% in a year.
Pembina Pipeline (PBA - Free Report) has an Earnings ESP of +9.09% and a Zacks Rank #2 at present. The firm is scheduled to release earnings on Aug 8.
PBA has a trailing four-quarter average earnings surprise of 10.91%. Valued at around $21.79 billion, PBA’s shares have risen 21.8% in a year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.