McDermott International (MDR) Tops 4Q Forecasts

McDermott International Inc. (MDR) reported fourth quarter EPS of $0.03 after the close Monday, compared to the consensus estimate of ($0.06). Revenues increased 55.9% from last year to $806.4 million. Analysts expected revenues of $715.83 million. The stock is now up $0.45, or 20%, to $3.06 on more than 5 million shares.

For the full-year ended December 31, 2014, the company reported revenues of $2.3 billion, compared to $2.7 billion for the year ended December 31, 2013. Operating income was $8.6 million.

For FY’15, McDermott issued revenue projection of $3.3-$3.6 billion, compared to the consensus revenue estimate of $2.79 billion. Operating income is expected in the range of $25 million to $50 million, including expected restructuring charges in the range of $25 million to $35 million.

On valuation measures, McDermott International Inc. shares, which currently have an average 3-month trading volume of 5.8 million shares, trade at a forward P/E of 130.50 and a P/E to growth ratio of (0.34). The median Wall Street price target on the name is $3.50 with a high target of $7.00. Currently ticker boasts 3 ‘Buy’ endorsements, compared to 10 ’Holds’ and 1 ‘Sell’.

Profitability-wise, MDR has a t-12 profit and operating margin of (20.80%) and (13.84%), respectively. The $620.26 million market cap company reported $852.09 million in cash vs. $891.5 million in debt in its most recent quarter.

MDR currently prints a one year loss of about 71% and a year-to-date loss of 14.09%.

The chart below shows where the equity has traded over the last 52 weeks.

McDermott International Inc. operates as an engineering, procurement, construction, and installation firm worldwide. The company was founded in 1923 and is based in Houston, Texas.

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