A month has gone by since the last earnings report for TechnipFMC plc (FTI - Free Report) . Shares have added about 4.9% in that time frame.
Will the recent positive trend continue leading up to its next earnings release, or is FTI due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Fourth-Quarter 2017 Results
TechnipFMC plc reported fourth-quarter 2017 earnings on a diluted basis (excluding one-time items) of 20 cents a share, missing the Zacks Consensus Estimate of 44 cents. The weak results can be attributed to lower revenues amid reduced project activities from its subsea segment. The bottom line also deteriorated from the year-ago adjusted earnings of 50 cents a share.
Revenues in the fourth quarter came in at $3,683 million below the Zacks Consensus Estimate of $3,834 million. Further, the revenues in the quarter under review also decreased 15.9% from the prior-year figure of $4,379.7 million.
Segmental Analysis
Subsea: The segment’s revenues for the fourth quarter were $1,292.2 million, reflecting a decrease of 36.2% from the year-ago figure of $2,024.1 million. Reduced project activities in Europe, Africa and Asia pacific regions led to the lower revenues. Concurrently, operating profit came in at $67.4 million, down 53.9% year over year.
Onshore/Offshore: This segment generated revenues of $2,019.5 million, down 2% year over year. Revenues declined due to completion of the first phase of a key LNG project, partly offset by increased activities in the Middle East, Europe and Asia Pacific regions. However, operating income jumped to $257.2 million versus operating loss of $55 million recorded in the fourth quarter of 2016. Strong project execution, especially successful progression of Yamal LNG project drove the profit of the segment.
Surface Technologies: The segment’s revenues for the fourth quarter were $372.3 million, up 22.6% from fourth-quarter 2016 figure of $303.6 million. The increase is primarily attributed to the rising momentum in the North American as well as completion activity. Further, a favorable product mix and leaner cost structure helped the company to report an operating profit of $53.3 million against an operating loss of $5.3 million incurred a year ago.
Backlog
As of Dec 31, 2017, TechnipFMC’s total backlog was $12,982.8 million compared with $16,743.9 million a year ago. Of this, backlog for Onshore/Offshore was $6,369.1 million, while Subsea and Surface Technologies backlogs were $6,203.9 million and $409.8 million, respectively.
Capex & Balance Sheet
In the reported quarter, TechnipFMC spent $85.3 million on capital programs. As of Dec 31, the company had cash and cash equivalents of $6,737.4 million and long-term debt of $3,777.9 million, with a debt-to-capitalization ratio of 22%.
Dividend
The board of directors declared a quarterly cash dividend of 13 cents per share, payable on Apr 4, 2018 to shareholders of record as of Mar 20, 2018.
Guidance
TechnipFMC projects revenues for Onshore/ Offshore segment to be within the range of $5.3-$5.7 billion in 2018, with an EBITDA margin of 10.5%, up from the prior guidance of 9.5%. Surface Technologies are expected to generate revenues between $1.5-1.6 billion, with EBITDA margin of 17.5%. The company estimates its subsea revenues to lie within $5-$5.3 billion, with EBITDA margin of 14%. Capex for 2018 is estimated to be around $300 million.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates. There have been four revisions higher for the current quarter compared to two lower.
VGM Scores
At this time, FTI has a poor Growth Score of F. Its Momentum is doing a lot better with a C. The stock was also allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Zacks' style scores indicate that the company's stock is suitable for value and momentum investors.
Outlook
Estimates have been broadly trending upward for the stock and the magnitude of these revisions looks promising. Notably, FTI has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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 >>
A month has gone by since the last earnings report for TechnipFMC plc (FTI - Free Report) . Shares have added about 4.9% in that time frame.
Will the recent positive trend continue leading up to its next earnings release, or is FTI due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Fourth-Quarter 2017 Results
TechnipFMC plc reported fourth-quarter 2017 earnings on a diluted basis (excluding one-time items) of 20 cents a share, missing the Zacks Consensus Estimate of 44 cents. The weak results can be attributed to lower revenues amid reduced project activities from its subsea segment. The bottom line also deteriorated from the year-ago adjusted earnings of 50 cents a share.
Revenues in the fourth quarter came in at $3,683 million below the Zacks Consensus Estimate of $3,834 million. Further, the revenues in the quarter under review also decreased 15.9% from the prior-year figure of $4,379.7 million.
Segmental Analysis
Subsea: The segment’s revenues for the fourth quarter were $1,292.2 million, reflecting a decrease of 36.2% from the year-ago figure of $2,024.1 million. Reduced project activities in Europe, Africa and Asia pacific regions led to the lower revenues. Concurrently, operating profit came in at $67.4 million, down 53.9% year over year.
Onshore/Offshore: This segment generated revenues of $2,019.5 million, down 2% year over year. Revenues declined due to completion of the first phase of a key LNG project, partly offset by increased activities in the Middle East, Europe and Asia Pacific regions. However, operating income jumped to $257.2 million versus operating loss of $55 million recorded in the fourth quarter of 2016. Strong project execution, especially successful progression of Yamal LNG project drove the profit of the segment.
Surface Technologies: The segment’s revenues for the fourth quarter were $372.3 million, up 22.6% from fourth-quarter 2016 figure of $303.6 million. The increase is primarily attributed to the rising momentum in the North American as well as completion activity. Further, a favorable product mix and leaner cost structure helped the company to report an operating profit of $53.3 million against an operating loss of $5.3 million incurred a year ago.
Backlog
As of Dec 31, 2017, TechnipFMC’s total backlog was $12,982.8 million compared with $16,743.9 million a year ago. Of this, backlog for Onshore/Offshore was $6,369.1 million, while Subsea and Surface Technologies backlogs were $6,203.9 million and $409.8 million, respectively.
Capex & Balance Sheet
In the reported quarter, TechnipFMC spent $85.3 million on capital programs. As of Dec 31, the company had cash and cash equivalents of $6,737.4 million and long-term debt of $3,777.9 million, with a debt-to-capitalization ratio of 22%.
Dividend
The board of directors declared a quarterly cash dividend of 13 cents per share, payable on Apr 4, 2018 to shareholders of record as of Mar 20, 2018.
Guidance
TechnipFMC projects revenues for Onshore/ Offshore segment to be within the range of $5.3-$5.7 billion in 2018, with an EBITDA margin of 10.5%, up from the prior guidance of 9.5%. Surface Technologies are expected to generate revenues between $1.5-1.6 billion, with EBITDA margin of 17.5%. The company estimates its subsea revenues to lie within $5-$5.3 billion, with EBITDA margin of 14%. Capex for 2018 is estimated to be around $300 million.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates. There have been four revisions higher for the current quarter compared to two lower.
VGM Scores
At this time, FTI has a poor Growth Score of F. Its Momentum is doing a lot better with a C. The stock was also allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Zacks' style scores indicate that the company's stock is suitable for value and momentum investors.
Outlook
Estimates have been broadly trending upward for the stock and the magnitude of these revisions looks promising. Notably, FTI has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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 >>
Get the latest research report on FTI - FREE