Offshore drilling contractor Transocean (NYSE: RIG) will be reporting results this Monday after market close. Here’s what you need to know.
Transocean beat analysts’ revenue expectations last quarter, reporting revenues of $1.04 billion, up 9.6% year on year. It was a slower quarter for the company, with a significant miss of analysts’ EPS estimates and a miss 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 grow 13.9% year on year, slowing from the 18.7% 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 to stay the course heading into earnings. Transocean has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Transocean’s peers in the oilfield services segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Noble Corporation’s revenues decreased 10.2% year on year, beating analysts’ expectations by 6.8%, and World Kinect reported revenues up 2.5%, topping estimates by 10.4%. Noble Corporation traded up 8.2% following the results while World Kinect was also up 10.9%.
Read our full analysis of Noble Corporation’s results here and World Kinect’s results here.
There has been positive sentiment among investors in the oilfield services segment, with share prices up 4.1% on average over the last month. Transocean is up 3.9% during the same time and is heading into earnings with an average analyst price target of $5.91 (compared to the current share price of $6.85).
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