According to Zacks, “Despite the weak commodity pricing environment, McDermott International has maintained its excellent track record of earnings surprise history, beating estimates handily in each of the last 4 quarters. This energy-focused engineering and construction firm has embarked on a major cost savings initiative to shore up its finances and turn around. Among other positives, McDermott received a large number of new contacts of late, thus adding to its already robust backlog. We also believe MDR's broad product portfolio insulates the operations to a large extent. Still, with a considerable portion of MDR’s current backlog assosiated with offshore operations, it remains susceptible to the pricing weakness that has affected the offshore drilling industry as well as the energy sector at large. Consequently, until the external environment challenges subside, we see limited upside for MDR shares.”
Other research analysts have also recently issued research reports about the company. Imperial Capital restated an outperform rating and issued a $7.00 price target on shares of McDermott International in a research note on Friday, September 9th. Citigroup Inc. boosted their price target on McDermott International from $5.00 to $6.00 and gave the stock a neutral rating in a research note on Wednesday, July 27th. Finally, Credit Suisse Group AG restated a hold rating and issued a $4.41 price target on shares of McDermott International in a research note on Saturday, June 4th. Two research analysts have rated the stock with a sell rating, ten have assigned a hold rating and four have issued a buy rating to the company. The company has a consensus rating of Hold and an average price target of $5.04.
McDermott International (NYSE:MDR) opened at 5.01 on Tuesday. McDermott International has a 52 week low of $2.20 and a 52 week high of $6.00. The company has a market cap of $1.21 billion, a P/E ratio of 417.50 and a beta of 1.21. The firm has a 50-day moving average price of $5.00 and a 200 day moving average price of $4.68.
McDermott International (NYSE:MDR) last released its earnings results on Tuesday, July 26th. The company reported $0.08 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $0.02 by $0.06. McDermott International had a return on equity of 6.51% and a net margin of 0.12%. The business had revenue of $706.60 million for the quarter, compared to the consensus estimate of $753.43 million. During the same period in the previous year, the company posted $0.04 earnings per share. The company’s revenue for the quarter was down 32.5% compared to the same quarter last year. Analysts expect that McDermott International will post $0.13 EPS for the current fiscal year.
A number of hedge funds have recently modified their holdings of MDR. Royal Bank of Canada boosted its stake in shares of McDermott International by 1.2% in the second quarter. Royal Bank of Canada now owns 287,638 shares of the company’s stock worth $1,421,000 after buying an additional 3,404 shares during the last quarter. Schwab Charles Investment Management Inc. boosted its stake in shares of McDermott International by 44.6% in the second quarter. Schwab Charles Investment Management Inc. now owns 2,641,228 shares of the company’s stock worth $13,048,000 after buying an additional 814,335 shares during the last quarter. Amalgamated Bank boosted its stake in shares of McDermott International by 2.9% in the second quarter. Amalgamated Bank now owns 26,388 shares of the company’s stock worth $132,000 after buying an additional 736 shares during the last quarter. American Century Companies Inc. bought a new stake in shares of McDermott International during the second quarter worth approximately $2,670,000. Finally, Legal & General Group Plc boosted its stake in shares of McDermott International by 20.0% in the second quarter. Legal & General Group Plc now owns 411,287 shares of the company’s stock worth $2,024,000 after buying an additional 68,528 shares during the last quarter. Institutional investors and hedge funds own 78.97% of the company’s stock.
McDermott International Company Profile
McDermott International, Inc is a provider of integrated engineering, procurement, construction and installation (EPCI) and module fabrication services for upstream field developments. The Company delivers fixed and floating production facilities, pipeline installations and subsea systems from concept to commissioning for complex offshore and subsea oil and gas projects.
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