A month has gone by since the last earnings report for Ensco plc . Shares have lost about 7.8% in that time frame.
Will the recent negative trend continue leading up to its next earnings release, or is ESV due for a breakout? 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
Ensco plc reported fourth-quarter 2017 loss of 23 cents a share (excluding one-time items), which was narrower than the Zacks Consensus Estimate of a loss of 26 cents. However, the figure compared unfavorably with earnings of 9 cents in the year-earlier quarter. The decline was mainly attributable to lower dayrates of the floater and jackups as well as higher expenses.
Total revenues were $454.2 million, down from $504.6 million in the year-ago quarter. The top line beat the Zacks Consensus Estimate of $452.25 million.
Full-year 2017 loss of 66 cents per share was wider than the Zacks Consensus Estimate of a loss of 50 cents. The company reported earnings of $1.59 per share in 2016.
Total revenues in 2017 fell to $1,843 million from $2,776.4 million in 2016. However, the figure surpassed the Zacks Consensus Estimate of $1,840 million.
Segmental Performance
Floaters: Revenues in the segment totaled $303 million and were flat year over year. This was caused by fewer rig operating days, which had led to a fall in the average day rate to $306,937 from $358,405 a year ago. Reported utilization was 44%, unchanged from the prior-year quarter. Floater contract drilling expenses increased nearly 27.5% to $193 million from $151.4 million in fourth-quarter 2016.
Jackups: Revenues at this segment declined 26.5% to $137 million from $186.5 million in the year-ago quarter. The downside mainly stemmed from fewer rig operating days for several jackups and a decline in the average day rate to $76,037 from $101,252. Reported utilization was unchanged at 54% from the year-ago quarter. Contract drilling expenses inched up 1% year over year to $128 million in the fourth quarter.
Other: Revenues of $15 million were flat year over year. Contract drilling expenses increased to $13 million from $10.8 million in the prior-year quarter.
Costs and Expenses
Depreciation expenses were $119.5 million compared with $110.2 million in fourth-quarter 2016. The increase was mainly due to the addition of Atwood rigs to its fleet. General and administrative expenses increased to $70.9 million from $24.7 million in the year-ago quarter.
Balance Sheet and Capex
At the end of the fourth quarter, Ensco had $445.4 million in cash and cash equivalents. Long-term debt was $4,750.7 million, with debt-to-capitalization ratio of 35.2% compared with 37.4% in the year-ago quarter.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimate. There has been one revision higher for the current quarter compared to three lower. In the past month, the consensus estimate has shifted by 20.4% due to these changes.
Ensco plc Price and Consensus
VGM Scores
At this time, ESV has a poor Growth Score of F, however its Momentum is doing a lot better with a C. Charting a somewhat similar path, 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 D. If you aren't focused on one strategy, this score is the one you should be interested in.
Our style scores indicate that the stock is more suitable for value investors than momentum investors.
Outlook
Estimates have been broadly trending downward for the stock and the magnitude of these revisions indicates a downward shift. Notably, ESV has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Why Is Ensco (ESV) Down 7.8% Since its Last Earnings Report?
A month has gone by since the last earnings report for Ensco plc . Shares have lost about 7.8% in that time frame.
Will the recent negative trend continue leading up to its next earnings release, or is ESV due for a breakout? 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
Ensco plc reported fourth-quarter 2017 loss of 23 cents a share (excluding one-time items), which was narrower than the Zacks Consensus Estimate of a loss of 26 cents. However, the figure compared unfavorably with earnings of 9 cents in the year-earlier quarter. The decline was mainly attributable to lower dayrates of the floater and jackups as well as higher expenses.
Total revenues were $454.2 million, down from $504.6 million in the year-ago quarter. The top line beat the Zacks Consensus Estimate of $452.25 million.
Full-year 2017 loss of 66 cents per share was wider than the Zacks Consensus Estimate of a loss of 50 cents. The company reported earnings of $1.59 per share in 2016.
Total revenues in 2017 fell to $1,843 million from $2,776.4 million in 2016. However, the figure surpassed the Zacks Consensus Estimate of $1,840 million.
Segmental Performance
Floaters: Revenues in the segment totaled $303 million and were flat year over year. This was caused by fewer rig operating days, which had led to a fall in the average day rate to $306,937 from $358,405 a year ago. Reported utilization was 44%, unchanged from the prior-year quarter. Floater contract drilling expenses increased nearly 27.5% to $193 million from $151.4 million in fourth-quarter 2016.
Jackups: Revenues at this segment declined 26.5% to $137 million from $186.5 million in the year-ago quarter. The downside mainly stemmed from fewer rig operating days for several jackups and a decline in the average day rate to $76,037 from $101,252. Reported utilization was unchanged at 54% from the year-ago quarter. Contract drilling expenses inched up 1% year over year to $128 million in the fourth quarter.
Other: Revenues of $15 million were flat year over year. Contract drilling expenses increased to $13 million from $10.8 million in the prior-year quarter.
Costs and Expenses
Depreciation expenses were $119.5 million compared with $110.2 million in fourth-quarter 2016. The increase was mainly due to the addition of Atwood rigs to its fleet. General and administrative expenses increased to $70.9 million from $24.7 million in the year-ago quarter.
Balance Sheet and Capex
At the end of the fourth quarter, Ensco had $445.4 million in cash and cash equivalents. Long-term debt was $4,750.7 million, with debt-to-capitalization ratio of 35.2% compared with 37.4% in the year-ago quarter.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimate. There has been one revision higher for the current quarter compared to three lower. In the past month, the consensus estimate has shifted by 20.4% due to these changes.
Ensco plc Price and Consensus
Ensco plc Price and Consensus | Ensco plc Quote
VGM Scores
At this time, ESV has a poor Growth Score of F, however its Momentum is doing a lot better with a C. Charting a somewhat similar path, 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 D. If you aren't focused on one strategy, this score is the one you should be interested in.
Our style scores indicate that the stock is more suitable for value investors than momentum investors.
Outlook
Estimates have been broadly trending downward for the stock and the magnitude of these revisions indicates a downward shift. Notably, ESV has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.