Offshore drilling contractor Transocean (NYSE: RIG) will be announcing earnings results this Monday after market close. Here’s what to look for.
Transocean beat analysts’ revenue expectations last quarter, reporting revenues of $966 million, down 2.2% year on year. It was an exceptional quarter for the company, with a beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
Is Transocean a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Transocean’s revenue to decline 8.2% year on year, a reversal from the 8.4% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Transocean rarely misses Wall Street’s revenue estimates.
Looking at Transocean’s peers in the oilfield services segment, some have already reported their Q3 results, giving us a hint as to what we can expect. ProPetro delivered year-on-year revenue growth of 20.9%, beating analysts’ expectations by 14.1%, and NOV reported revenues up 2.3%, topping estimates by 1.5%. ProPetro traded up 4.1% following the results while NOV was down 6.2%.
Read our full analysis of ProPetro’s results here and NOV’s results here.
There has been positive sentiment among investors in the oilfield services segment, with share prices up 6.2% on average over the last month. Transocean is up 34.1% during the same time and is heading into earnings with an average analyst price target of $6.56 (compared to the current share price of $6.93).
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