What Do Analysts Expect from FMC Technologies’ 1Q16 Earnings?
What Do Analysts Expect from FMC Technologies’ 1Q16 Earnings?
FMC Technologies’ earnings
FMC Technologies (FTI) is scheduled to release its 1Q16 earnings on Tuesday, April 26. In 1Q16, analysts expect the company to report adjusted EPS (earnings per share) of $0.31. This means Wall Street analysts expect FTI’s adjusted EPS to decrease 34% in the coming quarter from $0.46 per share in 4Q15. Rig idling or stacking by US upstream companies, persistent pricing pressure, and lower drilling activity in FTI’s US operations may lower FMC Technologies’ 1Q16 earnings.
FMC Technologies posted steady earnings growth from 1Q13 through 3Q14. During this period, its adjusted EPS rose 84%. From 3Q14 through 4Q15, adjusted earnings dipped 41% primarily due to the falling rig count in the United States.
FMC Technologies’ earnings versus estimates
In 4Q15, FMC Technologies’ adjusted EPS fell short of analysts’ consensus EPS estimate. As seen in the graph above, FMC Technologies’ adjusted EPS has exceeded estimates in many previous quarters. On average, the company has beaten the consensus EPS estimate by 2.4% in the past 12 quarters.
Peer comparison
Analysts expect Core Laboratories’ (CLB) 1Q16 adjusted earnings to fall to $0.37 per share compared to its adjusted earnings of $0.65 in 4Q15. Analysts expect Oil States International’s (OIS) 1Q16 adjusted earnings to fall to -$0.02 from $0.11 in 4Q15. OIS provides specialty products and services to oil and natural gas companies. Nabors Industries’ (NBR) 1Q16 adjusted earnings are expected to fall to -$0.34 from -$0.22 in 4Q15. FTI makes up 4.7% of the Market Vectors Oil Services ETF (OIH), which comprises 25 oilfield services companies.
In the next part of this series, we’ll discuss FMC Technologies’ value drivers.
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