It has been about a month since the last earnings report for FMC Technologies (FTI Quick QuoteFTI - Free Report) . Shares have lost about 11.8% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is FMC Technologies due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.

TechnipFMC Posts Q3 Loss, Misses Revenue Estimates

TechnipFMC reported third-quarter 2021 adjusted loss per share of 6 cents. However, the Zacks Consensus Estimate was a profit of 2 cents. Further, the year-ago quarter reported a profit of 16 cents. This underperformance is due to lower-than-anticipated revenues from both the Subsea and Surface Technologies segments. Revenues from the Subsea unit totaled $1.3 billion, falling short of the Zacks Consensus Estimate of $1.4 billion. Meanwhile, revenues from the Surface Technologies unit totaled $267.3 million, falling short of the Zacks Consensus Estimate of $291 million.

For the quarter ended Sep 30, this seabed-to-surface oilfield equipment and services provider’s revenues of $1.58 billion missed the Zacks Consensus Estimate by 5.55% and also fell from the year-ago quarter’s $3.34 billion.

In the third quarter, TechnipFMC’s inbound orders fell 24.7% from the year-ago period’s level to $1.4 billion, reflecting weak revenue visibility.

Also, the company’s backlog was down. As of September-end, TechnipFMC’s order backlog stood at $7 billion, deteriorating 7.7% from the 2020 reading.

Segment Analysis

Subsea:  Revenues in the quarter under review were $1.3 billion, down 12.6% from the year-ago sales figure of $1.5 billion due to reduced activities in the North Sea and Asia. Adjusted EBITDA was reported at $146.5 million, reflecting a marginal improvement from the year-ago quarter. Quarterly inbound orders fell 30.6% to $1.12 billion while backlog fell 7.7%.

Surface Technologies:  This smaller segment of the company recorded revenues of $267.3 million, up 18.4% year over year, primarily owing to an increase in North American drilling and completion activity. The unit’s adjusted EBITDA jumped 64.2% to $28.4 million. The segment’s inbound orders rose 20.4% while the quarter-end backlog decreased 7.6%.

Financials

In the reported quarter, TechnipFMC spent $47.3 million on capital programs. Cash provided by operations for the quarter came in at $135.9 million. As of Sep 30, the company had cash and cash equivalents of $1.03 billion and a long-term debt of $1.98 billion with debt-to-capitalization of 36.1%.

2021 Outlook & Guidance

Looking ahead, TechnipFMC maintains its previously announced revenue expectation from the Subsea unit to be in the $5.2-$5.5 billion range for the current year. It still expects revenues from Surface Technologies unit to be $1.05-$1.25 billion for 2021. In the fourth quarter, the firm expects a considerable rise in foreign order activity, owing to many multi-year agreements.

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.

How Have Estimates Been Moving Since Then?

It turns out, fresh estimates flatlined during the past month. The consensus estimate has shifted -20% due to these changes.

VGM Scores

At this time, FMC Technologies has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

FMC Technologies has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.