TechnipFMC plc (FTI - Free Report) reported second-quarter 2021 adjusted loss per share of 6 cents, wider than the Zacks Consensus Estimate of a loss of 1 cent. However, the year-ago quarter reported a profit of 9 cents. This underperformance is due to lower-than-anticipated revenues from the Surface Technologies segment. Revenues from the unit totaled $274.5 million, falling short of the Zacks Consensus Estimate of $276 million.
For the quarter ended Jun 30, this seabed-to-surface oilfield equipment and services provider’s revenues of $1.67 billion beat the Zacks Consensus Estimate by 4.46%. The outperformance can be primarily attributed to higher-than-anticipated revenues from the Subsea segment, the major contributor to the company’s top and the bottom line. Revenues from the unit totaled $1.4 billion, ahead of the Zacks Consensus Estimate of $1.32 billion. However, the top line fell 47.2% from the year-ago quarter’s sales.
In the second quarter, TechnipFMC’s inbound orders rose 123.2% from the year-ago period’s level to $1.6 billion, reflecting improving revenue visibility.
But the company’s backlog was down. As of June-end, TechnipFMC’s order backlog stood at $7.3 billion, deteriorating 2.1% from the 2020 reading.
Segment Analysis
Subsea: Revenues in the quarter under review were $1.4 billion, up 1.1% from the year-ago sales figure of $1.38 billion with seasonal progress in installation and service activities. Adjusted EBITDA was reported at $154.1 million, reflecting a 54.7% year-over-year improvement on lower costs and a strong installation activity. Quarterly inbound orders jumped 152.4% to $1.3 billion though backlog fell 1.9%.
Surface Technologies: This smaller segment of the company recorded revenues of $274.5 million, up 13.6% year over year, primarily owing to an increase in North American activity, improved international services and a solid project execution. The unit’s adjusted EBITDA skyrocketed 263.9% to $30.2 million and surpassed the Zacks Consensus Estimate of $28.3 million on ramped-up sales volume and lower charges. The segment’s inbound orders rose 43.3% while the quarter-end backlog decreased 6.6%.
Financials
In the reported quarter, TechnipFMC spent $39.7 million on capital programs. Cash required from operations for the quarter came in at $85.9 million. As of Jun 30, the company had cash and cash equivalents of $854.9 million and a long-term debt of $2.2 billion with debt-to-capitalization of 37.8%.
2021 Outlook & Guidance
Looking ahead, TechnipFMC expects a robust global outlook, which will be more sustainable than the earlier cycles. The company raised its revenue expectation from the Subsea unit to the $5.2-$5.5 billion range from the previous guidance of $5-$5.4 billion. It still expects revenues from Surface Technologies unit to be $1.05-$1.25 billion. This London-based oilfield services provider maintains its free cash flow generation projection for 2021 in the $120-$220 million band. The company reiterated its annual capital expenditure view of $250 million.
Zacks Rank & Key Picks
TechnipFMC currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the same space include Matador Resources Company (MTDR - Free Report) , Helix Energy Solutions Group, Inc. (HLX - Free Report) and Continental Resources, Inc. , each presently flaunting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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TechnipFMC plc (FTI - Free Report) reported second-quarter 2021 adjusted loss per share of 6 cents, wider than the Zacks Consensus Estimate of a loss of 1 cent. However, the year-ago quarter reported a profit of 9 cents. This underperformance is due to lower-than-anticipated revenues from the Surface Technologies segment. Revenues from the unit totaled $274.5 million, falling short of the Zacks Consensus Estimate of $276 million.
For the quarter ended Jun 30, this seabed-to-surface oilfield equipment and services provider’s revenues of $1.67 billion beat the Zacks Consensus Estimate by 4.46%. The outperformance can be primarily attributed to higher-than-anticipated revenues from the Subsea segment, the major contributor to the company’s top and the bottom line. Revenues from the unit totaled $1.4 billion, ahead of the Zacks Consensus Estimate of $1.32 billion. However, the top line fell 47.2% from the year-ago quarter’s sales.
In the second quarter, TechnipFMC’s inbound orders rose 123.2% from the year-ago period’s level to $1.6 billion, reflecting improving revenue visibility.
But the company’s backlog was down. As of June-end, TechnipFMC’s order backlog stood at $7.3 billion, deteriorating 2.1% from the 2020 reading.
Segment Analysis
Subsea: Revenues in the quarter under review were $1.4 billion, up 1.1% from the year-ago sales figure of $1.38 billion with seasonal progress in installation and service activities. Adjusted EBITDA was reported at $154.1 million, reflecting a 54.7% year-over-year improvement on lower costs and a strong installation activity. Quarterly inbound orders jumped 152.4% to $1.3 billion though backlog fell 1.9%.
Surface Technologies: This smaller segment of the company recorded revenues of $274.5 million, up 13.6% year over year, primarily owing to an increase in North American activity, improved international services and a solid project execution. The unit’s adjusted EBITDA skyrocketed 263.9% to $30.2 million and surpassed the Zacks Consensus Estimate of $28.3 million on ramped-up sales volume and lower charges. The segment’s inbound orders rose 43.3% while the quarter-end backlog decreased 6.6%.
Financials
In the reported quarter, TechnipFMC spent $39.7 million on capital programs. Cash required from operations for the quarter came in at $85.9 million. As of Jun 30, the company had cash and cash equivalents of $854.9 million and a long-term debt of $2.2 billion with debt-to-capitalization of 37.8%.
2021 Outlook & Guidance
Looking ahead, TechnipFMC expects a robust global outlook, which will be more sustainable than the earlier cycles. The company raised its revenue expectation from the Subsea unit to the $5.2-$5.5 billion range from the previous guidance of $5-$5.4 billion. It still expects revenues from Surface Technologies unit to be $1.05-$1.25 billion. This London-based oilfield services provider maintains its free cash flow generation projection for 2021 in the $120-$220 million band. The company reiterated its annual capital expenditure view of $250 million.
Zacks Rank & Key Picks
TechnipFMC currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the same space include Matador Resources Company (MTDR - Free Report) , Helix Energy Solutions Group, Inc. (HLX - Free Report) and Continental Resources, Inc. , each presently flaunting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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