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Will Revenue Efficiency Aid Transocean (RIG) Q3 Earnings?
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Transocean Ltd. (RIG - Free Report) is set to release third-quarter 2020 results after the closing bell on Monday, Nov 2. The current Zacks Consensus Estimate for the to-be-reported quarter is a loss of 17 cents per share on revenues of $783 million.
Let’s delve into the factors that might have influenced the offshore driller’s performance in the September quarter. But it’s worth taking a look at Transocean’s previous-quarter performance first.
Highlights of Q2 Earnings & Surprise History
In the last-reported quarter, the Switzerland-based rig supplier beat the consensus mark on improving utilization and higher revenue efficiency. Transocean reported break-even earnings, while the Zacks Consensus Estimate was pegged at a loss of 27 cents per share. Moreover, the company’s quarterly revenues of $930million surpassed the Zacks Consensus Estimate of $757 million.
As far as earnings surprises are concerned, Transocean beat the Zacks Consensus Estimate in two of the last four quarters, met once and missed in the other, delivering an earnings surprise of 16.57%, on average. This is depicted in the graph below:
The Zacks Consensus Estimate for the third-quarter bottom line remained the same in the last seven days. However, the estimated figure indicates a 55.3% improvement year over year. The Zacks Consensus Estimate for revenues, meanwhile, suggests a miniscule 0.1% decline from the year-ago period.
Factors to Consider This Quarter
The company anticipates third-quarter adjusted contract drilling revenues of roughly $800 million, essentially unchanged from the year-ago figure. While this is expected to have provided some support to Transocean’s cash flows, it also points to the company’s resilience and ability to face the ongoing price weakness.
Further, the company forecasts revenue efficiency to average an impressive 95% in the to-be-reported quarter. This is also an indication of minimal loss of revenues due to downtime and Transocean’s superior efficiency in translating its industry-leading backlog of $8.2 billion into cash.
Why a Likely Positive Surprise?
Our proven model predicts an earnings beat for Transocean this season. 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.
Transocean has an Earnings ESP of +6% and a Zacks Rank #3.
Other Stocks to Consider
Transocean is not the only energy company looking up this earnings cycle. Here are some other firms from the space that you may want to consider on the basis of our model:
DCP Midstream, LP has an Earnings ESP of +4.77% and a Zacks Rank #1. The firm is scheduled to release earnings on Nov 4.
Sunoco LP (SUN - Free Report) has an Earnings ESP of +8.68% and is Zacks #1 Ranked. The firm is scheduled to release earnings on Nov 4.
Comstock Resources, Inc. (CRK - Free Report) has an Earnings ESP of +6.66% and is Zacks #3 Ranked. The firm is scheduled to release earnings on Nov 4.
Have You Seen Zacks’ 2020 Election Stock Report?
The upcoming election could be a massive buying opportunity for savvy investors. Trillions of dollars will shift into new market sectors after the election. The question is, which sectors will soar for each candidate? Zacks has put together a new special report to help readers like you target big profits.
The 2020 Election Stock Report reveals specific stocks you’ll want to own immediately after the results are announced – 6 if Trump wins, 6 if Biden wins. Past election reports have led investors to gains of +71%, +83%, even +185% in the following months. This year’s picks could be even more lucrative.
Image: Bigstock
Will Revenue Efficiency Aid Transocean (RIG) Q3 Earnings?
Transocean Ltd. (RIG - Free Report) is set to release third-quarter 2020 results after the closing bell on Monday, Nov 2. The current Zacks Consensus Estimate for the to-be-reported quarter is a loss of 17 cents per share on revenues of $783 million.
Let’s delve into the factors that might have influenced the offshore driller’s performance in the September quarter. But it’s worth taking a look at Transocean’s previous-quarter performance first.
Highlights of Q2 Earnings & Surprise History
In the last-reported quarter, the Switzerland-based rig supplier beat the consensus mark on improving utilization and higher revenue efficiency. Transocean reported break-even earnings, while the Zacks Consensus Estimate was pegged at a loss of 27 cents per share. Moreover, the company’s quarterly revenues of $930million surpassed the Zacks Consensus Estimate of $757 million.
As far as earnings surprises are concerned, Transocean beat the Zacks Consensus Estimate in two of the last four quarters, met once and missed in the other, delivering an earnings surprise of 16.57%, on average. This is depicted in the graph below:
Transocean Ltd. Price and EPS Surprise
Transocean Ltd. price-eps-surprise | Transocean Ltd. Quote
Trend in Estimate Revision
The Zacks Consensus Estimate for the third-quarter bottom line remained the same in the last seven days. However, the estimated figure indicates a 55.3% improvement year over year. The Zacks Consensus Estimate for revenues, meanwhile, suggests a miniscule 0.1% decline from the year-ago period.
Factors to Consider This Quarter
The company anticipates third-quarter adjusted contract drilling revenues of roughly $800 million, essentially unchanged from the year-ago figure. While this is expected to have provided some support to Transocean’s cash flows, it also points to the company’s resilience and ability to face the ongoing price weakness.
Further, the company forecasts revenue efficiency to average an impressive 95% in the to-be-reported quarter. This is also an indication of minimal loss of revenues due to downtime and Transocean’s superior efficiency in translating its industry-leading backlog of $8.2 billion into cash.
Why a Likely Positive Surprise?
Our proven model predicts an earnings beat for Transocean this season. 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.
Transocean has an Earnings ESP of +6% and a Zacks Rank #3.
Other Stocks to Consider
Transocean is not the only energy company looking up this earnings cycle. Here are some other firms from the space that you may want to consider on the basis of our model:
DCP Midstream, LP has an Earnings ESP of +4.77% and a Zacks Rank #1. The firm is scheduled to release earnings on Nov 4.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Sunoco LP (SUN - Free Report) has an Earnings ESP of +8.68% and is Zacks #1 Ranked. The firm is scheduled to release earnings on Nov 4.
Comstock Resources, Inc. (CRK - Free Report) has an Earnings ESP of +6.66% and is Zacks #3 Ranked. The firm is scheduled to release earnings on Nov 4.
Have You Seen Zacks’ 2020 Election Stock Report?
The upcoming election could be a massive buying opportunity for savvy investors. Trillions of dollars will shift into new market sectors after the election. The question is, which sectors will soar for each candidate? Zacks has put together a new special report to help readers like you target big profits.
The 2020 Election Stock Report reveals specific stocks you’ll want to own immediately after the results are announced – 6 if Trump wins, 6 if Biden wins. Past election reports have led investors to gains of +71%, +83%, even +185% in the following months. This year’s picks could be even more lucrative.
Check out Zacks’ 2020 Election Stock Report >>