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Ensco (ESV) Earnings Beat, Revenues Miss Estimates in Q4
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Oil and natural gas driller, Ensco plc reported diluted fourth-quarter 2016 earnings of 9 cents a share (excluding one-time items), which surpassed the Zacks Consensus Estimate of 5 cents. The figure, however, decreased from 92 cents a share earned in the year-earlier quarter. The decline was mainly attributable to lower revenues from the floater and jackups segments.
Total revenue decreased to $504.6 million from $828.3 million in the year-ago quarter. The top line also missed the Zacks Consensus Estimate of $508.69 million.
Full-year 2016 earnings of $1.59 per share beat the Zacks Consensus Estimate of $1.50.
Total revenue for the full year decreased to $2,776.4 million from $4,063.4 million in 2015. The top line, however, beat the Zacks Consensus Estimate of $2,589.0 million.
Segmental Performance
Floaters: Revenues from floaters plunged 38.2% to $302.8 million in the fourth quarter from $490.3 million a year ago. The decline primarily stemmed from fewer rig operating days, which in turn, led to a fall in the average day rate to $358,405 from $397,146 a year ago. Reported utilization was 44% as against 57% in the prior-year quarter. Floater contract drilling expenses declined nearly 37% to $151.4 million from $239.2 million in fourth-quarter 2015.
Jackups: Revenues from this segment decreased 39.3% to $186.5 million from $307.4 million a year ago. The downside mainly stemmed from fewer rig operating days for several jackups and a decline in the average day rate to $101,252 from $125,785. Reported utilization was down to 54% from 66% a year ago. Contract drilling expenses decreased 175% year over year to $126.8 million in the fourth quarter. The decline was partly due to lower compensation, as well as repair and maintenance expenses.
Other: Revenues plunged to $15.3 million from $30.6 million in fourth-quarter 2015. Contract drilling expenses fell to $10.8 million from $26.7 million a year ago.
Costs and Expenses
Depreciation expenses were $110.2 million compared with $149.7 million in fourth-quarter 2015. General and administrative expenses declined to $24.7 million from $30.2 million last year, mainly due to disciplined expense management.
At the end of the fourth quarter, Ensco had $1,159.7 million in cash and cash equivalents. Long-term debt was $4,942.6 million, with debt-to-capitalization ratio of 37.4% compared with 36.9% in the preceding quarter.
Zacks Rank
Ensco carries a Zacks Rank #3 (Hold). Some better-ranked players in the same space include Delek Logistics Partners, LP (DKL - Free Report) , Sunrun Inc. (RUN - Free Report) and W&T Offshore Inc. (WTI - Free Report) . Both Delek Logistics Partners and Sunrun sport a Zacks Rank #1 (Strong Buy), while W&T Offshore holds a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Delek Logistics Partners posted a negative earnings surprise of 25.45% in the preceding quarter. It had an average negative earnings surprise of 11.32% in the four trailing quarters.
Sunrun posted a positive earnings surprise of 137.21% in the preceding quarter. It beat estimates in all the four trailing quarters with an average positive earnings surprise of 134.71%.
W&T Offshore posted a positive earnings surprise of 44.19% in the preceding quarter. It beat estimates in all the four trailing quarters with an average positive earnings surprise of 31.49%.
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Ensco (ESV) Earnings Beat, Revenues Miss Estimates in Q4
Oil and natural gas driller, Ensco plc reported diluted fourth-quarter 2016 earnings of 9 cents a share (excluding one-time items), which surpassed the Zacks Consensus Estimate of 5 cents. The figure, however, decreased from 92 cents a share earned in the year-earlier quarter. The decline was mainly attributable to lower revenues from the floater and jackups segments.
Total revenue decreased to $504.6 million from $828.3 million in the year-ago quarter. The top line also missed the Zacks Consensus Estimate of $508.69 million.
Full-year 2016 earnings of $1.59 per share beat the Zacks Consensus Estimate of $1.50.
Total revenue for the full year decreased to $2,776.4 million from $4,063.4 million in 2015. The top line, however, beat the Zacks Consensus Estimate of $2,589.0 million.
Segmental Performance
Floaters: Revenues from floaters plunged 38.2% to $302.8 million in the fourth quarter from $490.3 million a year ago. The decline primarily stemmed from fewer rig operating days, which in turn, led to a fall in the average day rate to $358,405 from $397,146 a year ago. Reported utilization was 44% as against 57% in the prior-year quarter. Floater contract drilling expenses declined nearly 37% to $151.4 million from $239.2 million in fourth-quarter 2015.
Jackups: Revenues from this segment decreased 39.3% to $186.5 million from $307.4 million a year ago. The downside mainly stemmed from fewer rig operating days for several jackups and a decline in the average day rate to $101,252 from $125,785. Reported utilization was down to 54% from 66% a year ago. Contract drilling expenses decreased 175% year over year to $126.8 million in the fourth quarter. The decline was partly due to lower compensation, as well as repair and maintenance expenses.
Other: Revenues plunged to $15.3 million from $30.6 million in fourth-quarter 2015. Contract drilling expenses fell to $10.8 million from $26.7 million a year ago.
Costs and Expenses
Depreciation expenses were $110.2 million compared with $149.7 million in fourth-quarter 2015. General and administrative expenses declined to $24.7 million from $30.2 million last year, mainly due to disciplined expense management.
ENSCO PLC Price, Consensus and EPS Surprise
ENSCO PLC Price, Consensus and EPS Surprise | ENSCO PLC Quote
Balance Sheet and Capex
At the end of the fourth quarter, Ensco had $1,159.7 million in cash and cash equivalents. Long-term debt was $4,942.6 million, with debt-to-capitalization ratio of 37.4% compared with 36.9% in the preceding quarter.
Zacks Rank
Ensco carries a Zacks Rank #3 (Hold). Some better-ranked players in the same space include Delek Logistics Partners, LP (DKL - Free Report) , Sunrun Inc. (RUN - Free Report) and W&T Offshore Inc. (WTI - Free Report) . Both Delek Logistics Partners and Sunrun sport a Zacks Rank #1 (Strong Buy), while W&T Offshore holds a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Delek Logistics Partners posted a negative earnings surprise of 25.45% in the preceding quarter. It had an average negative earnings surprise of 11.32% in the four trailing quarters.
Sunrun posted a positive earnings surprise of 137.21% in the preceding quarter. It beat estimates in all the four trailing quarters with an average positive earnings surprise of 134.71%.
W&T Offshore posted a positive earnings surprise of 44.19% in the preceding quarter. It beat estimates in all the four trailing quarters with an average positive earnings surprise of 31.49%.
A Full-Blown Technological Breakthrough in the Making
Zacks’ Aggressive Growth Strategist Brian Bolan explores autonomous cars in our latest Special Report, Driverless Cars: Your Roadmap to Mega-Profits Today. In addition to who will be selling them and how the auto industry will be impacted, Brian reveals 8 stocks with tremendous gain potential to feed off this phenomenon. Click to see the stocks right now >>