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TechnipFMC (FTI) to Report Q2 Earnings: What's in the Cards?
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TechnipFMC plc (FTI - Free Report) is set to release second-quarter results on Jul 25. The Zacks Consensus Estimate for earnings is pegged at 31 cents per share on revenues of $2.24 billion.
Let’s delve into the factors that might have influenced the oil and gas equipment and services provider’s performance in the to-be-reported quarter. But first, it’s worth taking a look at FTI’s performance in the last reported quarter.
Highlights of Q1 Earnings & Surprise History
In the last reported quarter, the Houston, TX-based oil and gas equipment and services company beat the consensus mark on improving Subsea segment. FTI reported adjusted earnings per share of 22 cents, which surpassed the Zacks Consensus Estimate of 16 cents. Revenues of $2 billion beat the consensus mark by 3.5%. FTI beat on earnings in three of the trailing four quarters and missed the same once, the average surprise being 5.42%.
The Zacks Consensus Estimate for second-quarter fiscal 2024 earnings has witnessed one downward and two upward movements in the past 30 days. The estimated figure indicates a 210% year-over-year increase. The Zacks Consensus Estimate for revenues implies a 13.67% increase from the year-ago period's level.
Factors to Consider
FTI’s revenues are expected to have improved in the quarter to be reported. Our model predicts revenues to increase to $2,231.4 million from the last reported quarter's level of $1,972.2 million. This can be attributed to the strong performance of the Subsea segment.
TechnipFMC's Subsea segment helps oil and gas companies find and extract oil and gas under the sea. The company designs, builds and installs the equipment needed for this, and also provides services to keep it working.
This segment is expected to have been a major contributor to the company's revenues, with projections indicating an increase to $1,928.7 million, up 19.2% from the year-ago period. This growth has been driven by heightened project activity in key regions, such as South America, the North Sea and the Gulf of Mexico.
The recent surge in West Texas Intermediate (“WTI”) crude oil prices is expected to have benefited service providers such as FTI. According to the U.S. Energy Information Administration, WTI crude oil prices increased 11.3% year over year and 5.55% sequentially. This rise in commodity prices typically translates to higher revenues for companies involved in oil services, including FTI, which specializes in providing technology and services for the energy sector.
The ongoing energy transition and sustained demand for oil and gas are likely to have supported TechnipFMC's project activities, underpinning its revenue growth. The company's focus on high-margin opportunities and its ability to execute complex projects are expected to have enhanced margins.
It is anticipated that these factors might have enhanced pricing and demand, resulting in stronger financial results for FTI in the quarter.
What Does Our Model Predict?
Our proven model predicts an earnings beat for TechnipFMC this reporting cycle. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
FTI currently has an Earnings ESP of +0.65% and a Zacks Rank #3.
Other Stocks to Consider
Here are some other firms that you may want to consider, as these, too, have the right combination of elements to post an earnings beat this reporting cycle.
The firm is scheduled to release earnings on Aug 7. SUN has a trailing four-quarter average earnings surprise of 9.81%. Valued at around $5.82 billion, SUN’s shares have risen 27.7% in a year.
Pembina Pipeline (PBA - Free Report) currently has an Earnings ESP of +9.09% and a Zacks Rank #2. The firm is scheduled to release earnings on Aug 8.
PBA has a trailing four-quarter average earnings surprise of 10.91%. PBA is valued at $21.97 billion.
Coterra Energy (CTRA - Free Report) has an Earnings ESP of +1.33% and a Zacks Rank #3 at present.
The firm is scheduled to release earnings on Aug 1. CTRA has a trailing four-quarter average earnings surprise of 9.81%. CTRA is valued at $19.95 billion.
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TechnipFMC (FTI) to Report Q2 Earnings: What's in the Cards?
TechnipFMC plc (FTI - Free Report) is set to release second-quarter results on Jul 25. The Zacks Consensus Estimate for earnings is pegged at 31 cents per share on revenues of $2.24 billion.
Let’s delve into the factors that might have influenced the oil and gas equipment and services provider’s performance in the to-be-reported quarter. But first, it’s worth taking a look at FTI’s performance in the last reported quarter.
Highlights of Q1 Earnings & Surprise History
In the last reported quarter, the Houston, TX-based oil and gas equipment and services company beat the consensus mark on improving Subsea segment. FTI reported adjusted earnings per share of 22 cents, which surpassed the Zacks Consensus Estimate of 16 cents. Revenues of $2 billion beat the consensus mark by 3.5%. FTI beat on earnings in three of the trailing four quarters and missed the same once, the average surprise being 5.42%.
This is depicted in the graph below:
TechnipFMC plc Price and EPS Surprise
TechnipFMC plc price-eps-surprise | TechnipFMC plc Quote
Trend in Estimate Revision
The Zacks Consensus Estimate for second-quarter fiscal 2024 earnings has witnessed one downward and two upward movements in the past 30 days. The estimated figure indicates a 210% year-over-year increase. The Zacks Consensus Estimate for revenues implies a 13.67% increase from the year-ago period's level.
Factors to Consider
FTI’s revenues are expected to have improved in the quarter to be reported. Our model predicts revenues to increase to $2,231.4 million from the last reported quarter's level of $1,972.2 million. This can be attributed to the strong performance of the Subsea segment.
TechnipFMC's Subsea segment helps oil and gas companies find and extract oil and gas under the sea. The company designs, builds and installs the equipment needed for this, and also provides services to keep it working.
This segment is expected to have been a major contributor to the company's revenues, with projections indicating an increase to $1,928.7 million, up 19.2% from the year-ago period. This growth has been driven by heightened project activity in key regions, such as South America, the North Sea and the Gulf of Mexico.
The recent surge in West Texas Intermediate (“WTI”) crude oil prices is expected to have benefited service providers such as FTI. According to the U.S. Energy Information Administration, WTI crude oil prices increased 11.3% year over year and 5.55% sequentially. This rise in commodity prices typically translates to higher revenues for companies involved in oil services, including FTI, which specializes in providing technology and services for the energy sector.
The ongoing energy transition and sustained demand for oil and gas are likely to have supported TechnipFMC's project activities, underpinning its revenue growth. The company's focus on high-margin opportunities and its ability to execute complex projects are expected to have enhanced margins.
It is anticipated that these factors might have enhanced pricing and demand, resulting in stronger financial results for FTI in the quarter.
What Does Our Model Predict?
Our proven model predicts an earnings beat for TechnipFMC this reporting cycle. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
FTI currently has an Earnings ESP of +0.65% and a Zacks Rank #3.
Other Stocks to Consider
Here are some other firms that you may want to consider, as these, too, have the right combination of elements to post an earnings beat this reporting cycle.
Sunoco (SUN - Free Report) has an Earnings ESP of +1.96% and a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The firm is scheduled to release earnings on Aug 7. SUN has a trailing four-quarter average earnings surprise of 9.81%. Valued at around $5.82 billion, SUN’s shares have risen 27.7% in a year.
Pembina Pipeline (PBA - Free Report) currently has an Earnings ESP of +9.09% and a Zacks Rank #2. The firm is scheduled to release earnings on Aug 8.
PBA has a trailing four-quarter average earnings surprise of 10.91%. PBA is valued at $21.97 billion.
Coterra Energy (CTRA - Free Report) has an Earnings ESP of +1.33% and a Zacks Rank #3 at present.
The firm is scheduled to release earnings on Aug 1. CTRA has a trailing four-quarter average earnings surprise of 9.81%. CTRA is valued at $19.95 billion.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.