McDermott jumps on big Q4 earnings surprise, Middle East contracts

• McDermott (MDR) +21.8% AH after reporting a surprise Q4 profit and better than expected revenues, as well as strong revenue guidance for 2015.
• MDR issues upside guidance for FY 2015, forecasting revenues of $3.3B-$3.6B vs. $2.79B analyst consensus estimate, and operating income of $25M-$50M; the company plans to lay off ~10% of its workers by the end of the year.
• MDR expects 2015 cash savings from its restructuring, before costs, of ~$50M, with cash savings of $100M/year beginning in 2016.
• At year-end 2014, contract backlog stood at $3.6B, down from $4B in Q3 and $4.8B at the end of 2013; 57% of the backlog is tied to subsea operations, and 43% to offshore operations.
• Also announces contract wins for two separate offshore construction projects in the Middle East: a significant power supply system replacement contract by Saudi Aramco for the Marjan field offshore Saudi Arabia, and a project for new jacket, temporary deck and replacement umbilical by Qatar Petroleum for the North Field Alpha gas development offshore Qatar.

Comments

[bonanza2252003]

sorry I sold my 4000 shares a few weeks back for a modest 8% gain . got nervous with fluctuating oil . going back in on pullbacks

[claritee]

This is a beyond impressive result. The slew of biz press releases, caused me to anticipate a good Qtr, and I bought hours before the announcement & really benefitted. But this beat was astounding, and even tho way up, I bought more. I mean, their Qtrly revs were higher than their market cap, how crazy is that? Their beat was 1/5 their market cap - Wow! This stock has some serious room to run!

[obiwan48]

Shorts getting ready to get their Boxer shorts handed to them.
This is just the beginning of a solid turn around story for MDR lead by it's new leadership and their team.
Despite an anticipated jump in share price today (with perhaps a pull back on a gap up in the next few days) I wouldn't be in a big hurry to sell MDR.
This will be a solid uptrend story (with corrections along the way) for awhile.
Much bigger shareholder gains lie ahead.
Large position in MDR and will not sell today.

[sam123456789]

still holding and will buy more if goes down, expecting oil to go down further

[flockof4]

Shoot...I just noticed it's up to $3.17/per in after hours. Even better.

[flockof4]

They were being written off and left for dead, but I've been accumulating. Today's rise in share price is minimal, but this report shows them conducting business and eking out earnings. I expect a tidy return on investment here in a couple years time.