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Is a Beat in Store for TechnipFMC (FTI) in Q3 Earnings?

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We expect TechnipFMC plc. (FTI - Free Report) to beat on earnings when it reports third-quarter 2019 results, after the closing bell on Wednesday Oct 23.

The current Zacks Consensus Estimate for earnings is pegged at 49 cents per share on revenues of $3,561 million.

Let’s delve deeper and find out the factors impacting the to-be-reported results.

TechnipFMC plc Price and EPS Surprise

TechnipFMC plc Price and EPS Surprise

TechnipFMC plc price-eps-surprise | TechnipFMC plc Quote

Why a Likely Positive Surprise?

Our proven model predicts an earnings beat for TechnipFMC this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Earnings ESP: TechnipFMC has an Earnings ESP of +2.09%.

Zacks Rank: TechnipFMC currently has a Zacks Rank #3, which increases the predictive power of ESP.

Factors Driving Better-Than-Expected Earnings?

Demand for the subsea equipment is likely to have increased in the third quarter as a result of the year-over-year rise in drilling rig activities in the U.S. offshore resources. Evidently, adjusted operating profits of this leading manufacturer of subsea drilling equipment in the quarter under review are likely to have ramped up in the onshore/offshore and subsea segments.

The Zacks Consensus Estimate for third-quarter adjusted operating profits from the Onshore/Offshore and Subsea units is pegged at $255 million and $98 million, respectively, higher than the year-ago reported figures of $243 million and $80 million each.

Highlights of Q2 Earnings

In the quarter ending June, London-based TechnipFMC — a leading manufacturer and supplier of products, services and fully integrated technology solutions for the energy industry — delivered better-than-expected earnings. This outperformance was attributed to higher-than-expected contribution from all the three segments of the company.

Precisely, adjusted EBITDA from the Onshore/Offshore unit totalled $282 million, significantly beating the Zacks Consensus Estimate of $215 million. Moreover, adjusted EBITDA from Subsea and Surface Technologies came in at $186.2 million and $46.7 million, beating the Zacks Consensus Estimate of $161 million and $46.51 million, respectively.

On a further encouraging note, the company booked record inbound orders of $11.2 billion, skyrocketing 164.2% year over year. Markedly, the company’s backlog soared 73.4% year over year to $25.8 billion. 

Other Stocks to Consider

TechnipFMC is not the only energy company looking forward to this reporting cycle. Here are some other stocks worth considering from the same space with the right combination of elements to also beat on earnings this time around:

The Williams Companies, Inc. (WMB - Free Report) has an Earnings ESP of +1.63% and a Zacks Rank of 3. The energy infrastructure provider is scheduled to release earnings on Oct 30. You can see the complete list of today’s Zacks #1 Rank stocks here.

Patterson-UTI Energy, Inc. (PTEN - Free Report) has an Earnings ESP of +0.38% and is Zacks #3 Ranked. The oilfield service provider is set to release earnings on Oct 24.

National Oilwell Varco, Inc. (NOV - Free Report) has an Earnings ESP of +16.00% and is a #3 Ranked stock. This manufacturer and designer of equipment used in onshore and offshore oil and gas drilling is scheduled to release earnings on Oct 28.

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