OII Earnings Prediction
The chart below shows how OII performed 10 days before and after its earnings report, based on data from the past quarters. Typically, OII sees a -1.60% change in stock price 10 days leading up to the earnings, and a -0.11% change 10 days following the report. On the earnings day itself, the stock moves by +0.82%. This data can give you a slight idea of what to expect for the next quarter's release.
OII Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
679.81M
7.03%
1.65%
Gross Margin
19.26%
6.64%
7.18%
Operating Margin
10.49%
15.02%
16.17%
Net Margin
6.07%
29.42%
16.06%
EPS
0.40
37.93%
17.65%
No Data Available
OII Earnings Analysis
Oceaneering International Inc. Corporation (OII.N) Earnings Conference Call
Positive
Adjusted EBITDA Performance: 1. Strong Adjusted EBITDA: Oceaneering reported an adjusted EBITDA of $98.1 million for Q3 2024, consistent with guidance and consensus estimates, showcasing operational resilience despite external challenges.
Strong Free Cash Flow: 2. Healthy Free Cash Flow: The company generated free cash flow of $67 million in Q3 2024, reflecting strong cash management and operational efficiency.
Operating Income Surge: 3. Increased Operating Income: Consolidated operating income increased by 23% year-over-year, driven by a 7% rise in revenue, highlighting improved performance across key segments.
Share Repurchase Commitment: 4. Robust Share Repurchase Program: Oceaneering repurchased 422,229 shares for approximately $10 million during the quarter, demonstrating commitment to returning value to shareholders.
Backlog Increase: 5. Growing Backlog: The backlog for manufactured products reached $671 million, an increase of $115 million compared to the same quarter last year, indicating strong future revenue potential.
Negative
Offshore Projects Revenue Decline: For the third quarter of 2024, our Offshore Projects Group (OPG) revenue, operating income, and operating income margin declined compared to the third quarter of 2023 due to a shift towards lower-margin inspection, maintenance, and repair services, alongside vessel crane repair costs and associated downtime.
Operating Income Decline: Integrity Management and Digital Solutions (IMDS) reported a decline in operating income and operating income margin compared to the same quarter last year, despite an 11% increase in revenue, primarily due to a one-time noncash charge related to the divestiture of the Maritime Intelligence division.
Revenue Stability Challenges: Aerospace and Defense Technologies (ADTech) experienced flat revenue year-over-year, with decreased operating income and margins attributed to increased project proposal costs and changes in project mix.
Revenue and Profitability Decline: For the fourth quarter of 2024, we anticipate a decline in revenue and operating profitability for the Subsea Robotics (SSR) segment, with a forecasted decrease in ROV days utilized and drill support activities, despite some offset from increased vessel support activities.
Unallocated Expense Increase: Unallocated expenses for the fourth quarter of 2024 are expected to be in the $40 million range, reflecting a year-over-year increase due to planned implementation of a new ERP and other IT costs.
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OII Earning Call Sentiment
Oceaneering International, Inc. (OII) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
OII.N
-2.05%Positive
The earnings call presents mixed signals: strong financial performance with increased revenue and EBITDA, alongside operational disruptions and divestitures impacting profitability. The Q&A reveals management's reluctance to provide specifics on pricing and order intake, indicating uncertainty. Despite share repurchases, increased backlog, and improved SSR margins, concerns over ROV utilization decline, project mix changes, and economic factors in Aerospace and Defense Technologies weigh down sentiment. The market cap suggests moderate volatility, leading to a neutral prediction for stock price movement.