McDermott Reaffirms 2018 Outlook; Issues Q1 Guidance - Quick Facts

(RTTNews) - McDermott International, Inc. (MDR) announced Thursday it expects earnings for the first quarter of fiscal 2018 in a range of $0.10 to $0.12 per share and adjusted earnings in the range of $0.15 to $0.17 per share. Revenues for the quarter are projected between $600 million and $610 million.

On average, analysts' polled by Thomson Reuters expect the company to report earnings of $0.05 per share on revenues of $618.39 million for the quarter. Analysts' estimates typically exclude special items.

McDermott said its preliminary first quarter 2018 results were driven by solid backlog conversion across all Areas, settlement of significant change orders and continued execution on cost-saving efforts such as the Fit2Grow initiative, which generated about $15 million in expected savings during the quarter.

For fiscal 2018, McDermott continues to expect earnings in the range of $0.42 to $0.52 per share on revenues between $3.1 billion and $3.3 billion. The Street expects earnings of $0.49 per share on revenues of $3.15 billion.

The company said its pending combination with CB&I have received all necessary regulatory approvals and the combination is on track to close in the second quarter of 2018.

The companies have validated the identified $250 million in annualized cost synergies with concrete plans to achieve them by the second quarter of 2019. In addition to the $250 million, the companies have also identified potential incremental savings of $100 million in savings.