Boston, MA 10/22/2013 (wallstreetpr) – The global complex offshore oil and gas engineering and procurement company McDermott International (NYSE:MDR) has suffered a downgrade from Macquarie. In a research note to investors Friday, the rating agency slashed its view on the engineering company from an “outperform” to “underperform”.
A number of equities research analysts have also lately echoed their sentiments on MDR. These include Zacks who have a neutral rating on the stock with a target price of $7.50. HSBC has also assigned the stock $6.75 in price objective. Currently, MDR has a consensus hold with a price objective of $10.27 following comments from 16 researchers studying the company. Out of these analysts, three have a buy rating on it, 12 have a hold rating and one has a sell rating.
In its most recent quarterly report, MDR missed analysts’ prediction in earnings per share, posting $0.63 against $0.66. In the quarter, MDR realized $647.25 million in revenue, once again missing consensus projection of $757.87 million. The latest revenue reported indicates 28% decrease from a year ago. In the similar quarter last year, MDR reported $0.22 EPS. For the full year, analysts expect MDR to post $-0.40 EPS in the current fiscal year.
MDR’s Q3.13 is coming up on November 5. Investors are waiting in anticipation to see how the company fairs this time around after a season of not-so good performance in the previous quarters.
The company’s business segments span Atlantic, Caspian, Asia Pacific and Middle East. Last year it sold its chartered fleet unit which operated 10 of its vessels. MDR provides integrated EPCI services from concept to commissioning. These include fixed floating production facilities, subsea systems and pipeline installations.
The complex engineering company gained 3.68% in the previous trading to close up $7.61. It now has a market cap of $1.80 billion after witnessing a huge volume activity on Friday, October 18. Its trading will closely be watch by investors today and throughout this week.
