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TechnipFMC plc (FTI) Q3 Earnings & Revenues Lag Estimates
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TechnipFMC plc (FTI - Free Report) reported third-quarter 2022 adjusted earnings of 3 cents per share, lagging the Zacks Consensus Estimate of 9 cents. This underperformance was due to lower-than-expected sales in the reported quarter and higher costs and expenses.
Adjusted EBITDA from the Subsea unit for the reported quarter totaled $183.8 million, beating the Zacks Consensus Estimate of $172 million. Meanwhile, the Surface Technologies unit’s profit came in at $40.8 million, underperforming the Zacks Consensus Estimate of $41.36 million.
For the quarter ended Sep 30, this seabed-to-surface oilfield equipment and services provider’s revenues of $1.73 billion marginally underperformed the Zacks Consensus Estimate of $1.74 billion, primarily due to lower-than-expected revenues from the Surface Technologies segment. However, revenues increased from the year-ago quarter’s $1.58 billion. This could be attributed to better-than-anticipated revenues of the Subsea unit.
Giving some respite to investors, FTI’s third-quarter inbound orders increased by 35.4% from the year-ago period’s level to $1.85 billion, reflecting strong revenue visibility.
Also, the company’s backlog rose. As of September end, TechnipFMC’s order backlog stood at $8.84 billion, improving by about 26.3% from the 2021 reading.
Subsea: Revenues in the quarter under review were $1.41 billion, up 1.46% from the year-ago sales figure of $1.31 billion due to higher project installation activity in Brazil and Guyana.
Adjusted EBITDA was reported at $183.8 million, up by about 25.5% from the year-ago quarter’s level due to improved margins in the backlog and increased installation activity. The quarterly inbound orders jumped 25.5% to $1.4 billion, while the backlog rose 14.1%.
Surface Technologies: This smaller segment of the company recorded revenues of $318 million, up 19% year over year due to revenue growth globally, with particular strength in the Middle East.
Moreover, the unit’s adjusted EBITDA increased by 43.7% to $40.8 million due to higher international activity, including the progressive ramp-up in the Middle East volume and the timing of associated costs.
The segment’s inbound orders rose significantly by about 79.8%, while the quarter-end backlog increased by 263%.
Financials
In the reported quarter, TechnipFMC spent $30.9 million on capital programs. As of Sep 30, the company had cash and cash equivalents of $711.5 million and long-term debt of $1.13 billion, with a debt-to-capitalization of 26.3%.
2022 Outlook
TechnipFMC retained revenue expectations from the Subsea unit in the $5.2-$5.6 billion range for 2022 and maintained the Surface Technologies unit’s 2022 revenue guidance between $1.15 and $1.30 billion.
This London-based oilfield services provider maintained its free cash flow projection for 2022, which is expected in the $100-$250 million band.
The company updated its annual capital expenditure guidance from $230 million to $180 million for 2022 but stuck to its earlier net interest expense outlook in the band of $105-$115 million.
The Zacks Consensus Estimate for RPC’s 2022 earnings is pegged at 55 cents per share, which implies an increase of 1,733% from the year-ago earnings of 3 cents.
RES beat estimates for earnings in all the trailing four quarters, the average being around 62%.
The consensus estimate for Halliburton’s 2022 earnings stands at $2.07 per share, up 91.7% from the year-ago earnings of $1.08.
HAL beat the Zacks Consensus Estimate for earnings in all the trailing four quarters, the average being around 5.5%.
The consensus mark for SilverBow’s 2022 earnings stands at $8.72 per share, which indicates an increase of 35.8% from the year-ago earnings of $6.42.
SBOW beat estimates for earnings in all the trailing four quarters, the average being 36%.
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TechnipFMC plc (FTI) Q3 Earnings & Revenues Lag Estimates
TechnipFMC plc (FTI - Free Report) reported third-quarter 2022 adjusted earnings of 3 cents per share, lagging the Zacks Consensus Estimate of 9 cents. This underperformance was due to lower-than-expected sales in the reported quarter and higher costs and expenses.
Adjusted EBITDA from the Subsea unit for the reported quarter totaled $183.8 million, beating the Zacks Consensus Estimate of $172 million. Meanwhile, the Surface Technologies unit’s profit came in at $40.8 million, underperforming the Zacks Consensus Estimate of $41.36 million.
For the quarter ended Sep 30, this seabed-to-surface oilfield equipment and services provider’s revenues of $1.73 billion marginally underperformed the Zacks Consensus Estimate of $1.74 billion, primarily due to lower-than-expected revenues from the Surface Technologies segment. However, revenues increased from the year-ago quarter’s $1.58 billion. This could be attributed to better-than-anticipated revenues of the Subsea unit.
Giving some respite to investors, FTI’s third-quarter inbound orders increased by 35.4% from the year-ago period’s level to $1.85 billion, reflecting strong revenue visibility.
Also, the company’s backlog rose. As of September end, TechnipFMC’s order backlog stood at $8.84 billion, improving by about 26.3% from the 2021 reading.
TechnipFMC plc Price, Consensus and EPS Surprise
TechnipFMC plc price-consensus-eps-surprise-chart | TechnipFMC plc Quote
Segment Analysis
Subsea: Revenues in the quarter under review were $1.41 billion, up 1.46% from the year-ago sales figure of $1.31 billion due to higher project installation activity in Brazil and Guyana.
Adjusted EBITDA was reported at $183.8 million, up by about 25.5% from the year-ago quarter’s level due to improved margins in the backlog and increased installation activity. The quarterly inbound orders jumped 25.5% to $1.4 billion, while the backlog rose 14.1%.
Surface Technologies: This smaller segment of the company recorded revenues of $318 million, up 19% year over year due to revenue growth globally, with particular strength in the Middle East.
Moreover, the unit’s adjusted EBITDA increased by 43.7% to $40.8 million due to higher international activity, including the progressive ramp-up in the Middle East volume and the timing of associated costs.
The segment’s inbound orders rose significantly by about 79.8%, while the quarter-end backlog increased by 263%.
Financials
In the reported quarter, TechnipFMC spent $30.9 million on capital programs. As of Sep 30, the company had cash and cash equivalents of $711.5 million and long-term debt of $1.13 billion, with a debt-to-capitalization of 26.3%.
2022 Outlook
TechnipFMC retained revenue expectations from the Subsea unit in the $5.2-$5.6 billion range for 2022 and maintained the Surface Technologies unit’s 2022 revenue guidance between $1.15 and $1.30 billion.
This London-based oilfield services provider maintained its free cash flow projection for 2022, which is expected in the $100-$250 million band.
The company updated its annual capital expenditure guidance from $230 million to $180 million for 2022 but stuck to its earlier net interest expense outlook in the band of $105-$115 million.
Zacks Rank & Key Picks
TechnipFMC currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks from the energy space that warrant a look include Halliburton (HAL - Free Report) , RPC (RES - Free Report) and SilverBow Resources (SBOW - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for RPC’s 2022 earnings is pegged at 55 cents per share, which implies an increase of 1,733% from the year-ago earnings of 3 cents.
RES beat estimates for earnings in all the trailing four quarters, the average being around 62%.
The consensus estimate for Halliburton’s 2022 earnings stands at $2.07 per share, up 91.7% from the year-ago earnings of $1.08.
HAL beat the Zacks Consensus Estimate for earnings in all the trailing four quarters, the average being around 5.5%.
The consensus mark for SilverBow’s 2022 earnings stands at $8.72 per share, which indicates an increase of 35.8% from the year-ago earnings of $6.42.
SBOW beat estimates for earnings in all the trailing four quarters, the average being 36%.