Oilfield equipment manufacturer FMC Technologies Inc. (FTI - Free Report) reported weak second-quarter 2016 results. A stronger U.S. dollar, record low rig counts in North America along with reduced land activity in the continent was primarily behind the downfall.
The Houston, TX-based company posted adjusted diluted earnings per share of 22 cents, which plummeted almost 58% from the year-earlier adjusted figure of 52 cents. The bottom line also came in below the Zacks Consensus Estimate of 30 cents.
FMC Technologies reported revenues of $1,150.3 million, down 32% from $1,695.2 million generated in second-quarter 2015. The top line also failed to meet the Zacks Consensus Estimate of $1,260 million.
Segmental Analysis
Subsea Technologies: Revenues were $854.2 million, down 31% from the second quarter of 2015. This was primarily due to the effect of a stronger U.S. dollar.
Operating profit of $97.2 million was lower than the year-ago quarter level of $183.5 million. Lower subsea revenues hampered the results.
Surface Technologies: Revenues fell almost 40% year over year to $218.7 million. A significant decline in North American rig count affected the segment’s performance.
So much so that the segment incurred operating loss of $21.7 million against a profit $27.5 million in the year-ago comparable quarter.
Energy Infrastructure: Revenues for the April to June period came in at $85.1 million, 16% lower than second-quarter 2015. This was owing to reduced land activity in North America.
Operating profit for the segment increased to $7.8 million from $5.3 million in the year-earlier quarter.
Backlog
As of Jun 30, 2016, FMC Technologies reported a total backlog (including inter-company eliminations) of $3,386.9 million, significantly below the prior-year quarter level of $5,323.8 million. Out of this, backlog for Subsea Technologies was $2,898.8 million, while Surface Technologies and Energy Infrastructure backlog was $357 million and $133.2 million, respectively.
Balance Sheet
In the reported quarter, FMC Technologies spent $31.7 million on capital programs. As of Jun 30, the company had cash and cash equivalents of $1,075 million, long-term debt of $1,298.7 million, and a debt-to-capitalization ratio of 33.5%.
FMC TECH INC Price, Consensus and EPS Surprise
Zacks Rank & Other Stock Picks
FMC Technologies is a leading manufacturer and supplier of technology solutions for the energy industry. The company currently carries a Zacks Rank #3 (Hold).
Some better-ranked players in the energy sector include Murphy USA Inc. (MUSA - Free Report) , NGL Energy Partners LP (NGL - Free Report) and North Atlantic Drilling Limited . Each of these stocks sports a Zacks Rank #1 (Strong Buy).
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Oilfield equipment manufacturer FMC Technologies Inc. (FTI - Free Report) reported weak second-quarter 2016 results. A stronger U.S. dollar, record low rig counts in North America along with reduced land activity in the continent was primarily behind the downfall.
The Houston, TX-based company posted adjusted diluted earnings per share of 22 cents, which plummeted almost 58% from the year-earlier adjusted figure of 52 cents. The bottom line also came in below the Zacks Consensus Estimate of 30 cents.
FMC Technologies reported revenues of $1,150.3 million, down 32% from $1,695.2 million generated in second-quarter 2015. The top line also failed to meet the Zacks Consensus Estimate of $1,260 million.
Segmental Analysis
Subsea Technologies: Revenues were $854.2 million, down 31% from the second quarter of 2015. This was primarily due to the effect of a stronger U.S. dollar.
Operating profit of $97.2 million was lower than the year-ago quarter level of $183.5 million. Lower subsea revenues hampered the results.
Surface Technologies: Revenues fell almost 40% year over year to $218.7 million. A significant decline in North American rig count affected the segment’s performance.
So much so that the segment incurred operating loss of $21.7 million against a profit $27.5 million in the year-ago comparable quarter.
Energy Infrastructure: Revenues for the April to June period came in at $85.1 million, 16% lower than second-quarter 2015. This was owing to reduced land activity in North America.
Operating profit for the segment increased to $7.8 million from $5.3 million in the year-earlier quarter.
Backlog
As of Jun 30, 2016, FMC Technologies reported a total backlog (including inter-company eliminations) of $3,386.9 million, significantly below the prior-year quarter level of $5,323.8 million. Out of this, backlog for Subsea Technologies was $2,898.8 million, while Surface Technologies and Energy Infrastructure backlog was $357 million and $133.2 million, respectively.
Balance Sheet
In the reported quarter, FMC Technologies spent $31.7 million on capital programs. As of Jun 30, the company had cash and cash equivalents of $1,075 million, long-term debt of $1,298.7 million, and a debt-to-capitalization ratio of 33.5%.
FMC TECH INC Price, Consensus and EPS Surprise
Zacks Rank & Other Stock Picks
FMC Technologies is a leading manufacturer and supplier of technology solutions for the energy industry. The company currently carries a Zacks Rank #3 (Hold).
Some better-ranked players in the energy sector include Murphy USA Inc. (MUSA - Free Report) , NGL Energy Partners LP (NGL - Free Report) and North Atlantic Drilling Limited . Each of these stocks sports a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
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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