McDermott International Inc. (MDR) Rating Lowered to Hold at Zacks Investment Research
McDermott International Inc. (NYSE:MDR) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued on Tuesday.
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 equities research analysts also recently issued research reports about the company. Credit Suisse Group AG reaffirmed a “hold” rating and set a $4.41 price objective on shares of McDermott International in a research report on Saturday, June 4th. Imperial Capital raised their price objective on McDermott International from $6.00 to $7.00 and gave the company an “outperform” rating in a research report on Thursday, July 28th. Finally, Citigroup Inc. raised their price objective on McDermott International from $5.00 to $6.00 and gave the company a “neutral” rating in a research report on Wednesday, July 27th. Two research analysts have rated the stock with a sell rating, ten have given a hold rating and four have given a buy rating to the stock. The company currently has an average rating of “Hold” and a consensus target price of $5.04.
Shares of McDermott International (NYSE:MDR) opened at 4.81 on Tuesday. The stock’s 50 day moving average is $5.01 and its 200 day moving average is $4.68. The stock has a market cap of $1.16 billion, a price-to-earnings ratio of 400.83 and a beta of 1.39. McDermott International has a 52-week low of $2.20 and a 52-week high of $6.00.
McDermott International (NYSE:MDR) last issued its quarterly earnings data on Tuesday, July 26th. The company reported $0.08 earnings per share for the quarter, beating analysts’ consensus estimates of $0.02 by $0.06. McDermott International had a return on equity of 6.51% and a net margin of 0.12%. The company had revenue of $706.60 million for the quarter, compared to the consensus estimate of $753.43 million. During the same quarter last year, the company earned $0.04 earnings per share. The firm’s revenue for the quarter was down 32.5% compared to the same quarter last year. On average, equities analysts predict that McDermott International will post $0.13 EPS for the current fiscal year.
A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. Amalgamated Bank boosted its position in shares of McDermott International by 2.9% in the second quarter. Amalgamated Bank now owns 26,388 shares of the company’s stock valued at $132,000 after buying an additional 736 shares in the last quarter. Moors & Cabot Inc. boosted its position in shares of McDermott International by 2.0% in the second quarter. Moors & Cabot Inc. now owns 50,500 shares of the company’s stock valued at $245,000 after buying an additional 1,000 shares in the last quarter. ProShare Advisors LLC boosted its position in shares of McDermott International by 4.0% in the second quarter. ProShare Advisors LLC now owns 32,096 shares of the company’s stock valued at $159,000 after buying an additional 1,249 shares in the last quarter. California State Teachers Retirement System boosted its position in shares of McDermott International by 0.3% in the second quarter. California State Teachers Retirement System now owns 507,011 shares of the company’s stock valued at $2,505,000 after buying an additional 1,619 shares in the last quarter. Finally, Pinnacle Holdings LLC boosted its position in shares of McDermott International by 1.1% in the first quarter. Pinnacle Holdings LLC now owns 151,788 shares of the company’s stock valued at $621,000 after buying an additional 1,620 shares in the last quarter. Institutional investors 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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