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What's in Store for Oceaneering International Stock in Q2 Earnings?
Read MoreHide Full Article
Key Takeaways
OII's Q2 revenues are projected at $698.5M, up 4.4% from last year's actual of $668.8M.
Subsea Robotics revenues are expected to grow 13%, with gains in backlog of around 20% year over year.
OII's cost of services and products is expected to rise 3.2%, pressuring its profit margins.
Oceaneering International, Inc. (OII - Free Report) is set to report second-quarter earnings on July 23, after the closing bell. The Zacks Consensus Estimate for earnings is pegged at 42 cents per share and the same for revenues is pinned at $698.5 million.
Let us delve into the factors that might have influenced OII’s performance in the to-be-reported quarter. Before that, it is worth taking a look at the company’s performance in the last reported quarter.
Highlights of OII’s Q1 Earnings
In the last reported quarter, Houston, TX-based oil and gas equipment and services company’s earnings beat the consensus mark. OII reported an adjusted profit of 43 cents per share, beating the Zacks Consensus Estimate by 7 cents. This was due to year-over-year strong operating income from certain segments, such as Subsea Robotics and Offshore Projects Group. Additionally, revenues of $675 million beat the Zacks Consensus Estimate by 1.7%.
OII’s earnings beat the Zacks Consensus Estimate in one of the trailing four quarters and missed in the other three, delivering an average negative surprise of 10.2%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
This is depicted in the graph below:
Oceaneering International, Inc. Price and EPS Surprise
The Zacks Consensus Estimate for second-quarter 2025 earnings has witnessed an upward movement of 5% in the past seven days. The estimated figure indicates a 50% year-over-year increase. The Zacks Consensus Estimate for revenues implies an increase of 4.4% from the year-ago period’s actual.
Factors to Consider Ahead of OII’s Q2 Results
We expect that OII's revenues are likely to have improved in the quarter to be reported, primarily driven by demand for its services and products from the offshore energy industry, particularly in areas with deepwater exploration and production activities. Additionally, the company serves other industries, such as defense and aerospace, diversifying its revenue streams.
The Zacks Consensus Estimate for second-quarter revenues is expected to have increased from the year-ago quarter’s $668.8 million. This anticipated growth can be attributed to the robust performance of the energy services and products segments, specifically, the Subsea Robotics segment. Based on our model estimates, revenues from the Subsea Robotics segment are anticipated to increase about 13% with a marginal growth expected from the Offshore Projects Group and the Manufactured Products segment compared with the year-ago quarter’s level. Our model also projects an improvement in the company’s backlog in the quarter to be reported by about 20% year over year.
Oceaneering International's strength comes from its strong relationships with well-established, financially stable exploration and production companies. These clients usually have long-term growth plans, which help provide consistent revenues and stability for the business. Since these companies are less affected by short-term changes in commodity prices, Oceaneering International is likely to have benefited from more stable performance.
Demand for Oceaneering International's services is expected to have remained strong, thanks to ongoing offshore energy exploration and production. Factors like rising global energy consumption and the shift to cleaner energy have played a big role in this. Additionally, the company’s focus on long-term contracts is likely to have helped shield it from short-term market ups and downs, providing a more stable revenue stream and reducing exposure to price fluctuations.
On a somewhat bearish note, the increase in OII’s costs might have dented its to-be-reported bottom line. The company’s cost of services and products is projected to reach $566 million in the second quarter, which is 3.2% up from the year-ago quarter’s $548.6 million. Moreover, its selling, general and administrative expenses are expected to increase from $59.8 million to $62.6 million in the same time frame.
What Does Our Model Predict for OII?
Our proven model does not predict an earnings beat for Oceaneering International 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. However, that is not the case here.
OII’s Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, for this company is +4.76%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
OII’s Zacks Rank: OII currently carries a Zacks Rank #4 (Sell).
Stocks to Consider
Here are some firms from the energy space that you may want to consider, as these have the right combination of elements to post an earnings beat this reporting cycle.
MGY is scheduled to release earnings on July 30. Notably, Magnolia’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 7.1%. Valued at around $4.4 billion, Magnolia’s shares have lost 14.9% in a year.
TotalEnergies SE (TTE - Free Report) has an Earnings ESP of +0.05% and a Zacks Rank #3. TTE is slated to release earnings on July 24.
The Zacks Consensus Estimate for Total Energies’ second-quarter 2025 earnings has been revised 2.4% upward in the past 30 days. Valued at around $148.3 billion, Total Energies’ shares have lost 9.8% in a year.
Phillips 66 (PSX - Free Report) has an Earnings ESP of +4.25% and a Zacks Rank #3. PSX is scheduled to release earnings on July 25.
Phillips’ expected EPS growth rate for the next five years is currently 15%, which compares favorably with the industry's 12.60%. Valued at around $50.4 billion, Phillips’ shares have lost 11.1% in a year.
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What's in Store for Oceaneering International Stock in Q2 Earnings?
Key Takeaways
Oceaneering International, Inc. (OII - Free Report) is set to report second-quarter earnings on July 23, after the closing bell. The Zacks Consensus Estimate for earnings is pegged at 42 cents per share and the same for revenues is pinned at $698.5 million.
Let us delve into the factors that might have influenced OII’s performance in the to-be-reported quarter. Before that, it is worth taking a look at the company’s performance in the last reported quarter.
Highlights of OII’s Q1 Earnings
In the last reported quarter, Houston, TX-based oil and gas equipment and services company’s earnings beat the consensus mark. OII reported an adjusted profit of 43 cents per share, beating the Zacks Consensus Estimate by 7 cents. This was due to year-over-year strong operating income from certain segments, such as Subsea Robotics and Offshore Projects Group. Additionally, revenues of $675 million beat the Zacks Consensus Estimate by 1.7%.
OII’s earnings beat the Zacks Consensus Estimate in one of the trailing four quarters and missed in the other three, delivering an average negative surprise of 10.2%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
This is depicted in the graph below:
Oceaneering International, Inc. Price and EPS Surprise
Oceaneering International, Inc. price-eps-surprise | Oceaneering International, Inc. Quote
OII Stock’s Trend in Estimate Revision
The Zacks Consensus Estimate for second-quarter 2025 earnings has witnessed an upward movement of 5% in the past seven days. The estimated figure indicates a 50% year-over-year increase. The Zacks Consensus Estimate for revenues implies an increase of 4.4% from the year-ago period’s actual.
Factors to Consider Ahead of OII’s Q2 Results
We expect that OII's revenues are likely to have improved in the quarter to be reported, primarily driven by demand for its services and products from the offshore energy industry, particularly in areas with deepwater exploration and production activities. Additionally, the company serves other industries, such as defense and aerospace, diversifying its revenue streams.
The Zacks Consensus Estimate for second-quarter revenues is expected to have increased from the year-ago quarter’s $668.8 million. This anticipated growth can be attributed to the robust performance of the energy services and products segments, specifically, the Subsea Robotics segment. Based on our model estimates, revenues from the Subsea Robotics segment are anticipated to increase about 13% with a marginal growth expected from the Offshore Projects Group and the Manufactured Products segment compared with the year-ago quarter’s level. Our model also projects an improvement in the company’s backlog in the quarter to be reported by about 20% year over year.
Oceaneering International's strength comes from its strong relationships with well-established, financially stable exploration and production companies. These clients usually have long-term growth plans, which help provide consistent revenues and stability for the business. Since these companies are less affected by short-term changes in commodity prices, Oceaneering International is likely to have benefited from more stable performance.
Demand for Oceaneering International's services is expected to have remained strong, thanks to ongoing offshore energy exploration and production. Factors like rising global energy consumption and the shift to cleaner energy have played a big role in this. Additionally, the company’s focus on long-term contracts is likely to have helped shield it from short-term market ups and downs, providing a more stable revenue stream and reducing exposure to price fluctuations.
On a somewhat bearish note, the increase in OII’s costs might have dented its to-be-reported bottom line. The company’s cost of services and products is projected to reach $566 million in the second quarter, which is 3.2% up from the year-ago quarter’s $548.6 million. Moreover, its selling, general and administrative expenses are expected to increase from $59.8 million to $62.6 million in the same time frame.
What Does Our Model Predict for OII?
Our proven model does not predict an earnings beat for Oceaneering International 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. However, that is not the case here.
OII’s Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, for this company is +4.76%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
OII’s Zacks Rank: OII currently carries a Zacks Rank #4 (Sell).
Stocks to Consider
Here are some firms from the energy space that you may want to consider, as these have the right combination of elements to post an earnings beat this reporting cycle.
Magnolia Oil & Gas Corporation (MGY - Free Report) has an Earnings ESP of +10.04% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
MGY is scheduled to release earnings on July 30. Notably, Magnolia’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 7.1%. Valued at around $4.4 billion, Magnolia’s shares have lost 14.9% in a year.
TotalEnergies SE (TTE - Free Report) has an Earnings ESP of +0.05% and a Zacks Rank #3. TTE is slated to release earnings on July 24.
The Zacks Consensus Estimate for Total Energies’ second-quarter 2025 earnings has been revised 2.4% upward in the past 30 days. Valued at around $148.3 billion, Total Energies’ shares have lost 9.8% in a year.
Phillips 66 (PSX - Free Report) has an Earnings ESP of +4.25% and a Zacks Rank #3. PSX is scheduled to release earnings on July 25.
Phillips’ expected EPS growth rate for the next five years is currently 15%, which compares favorably with the industry's 12.60%. Valued at around $50.4 billion, Phillips’ shares have lost 11.1% in a year.