McDermott International (NYSE:MDR) shares drop below dermis
Though it’s not always possible to time the market or panic over market fluctuations, it’s good to keep an eye on any massive changes as these may prove to be handy when it comes to investing. The energy engineering company McDermott International (NYSE:MDR) dipped 18% after it announced it earnings report.
Q2 revenue dropped 27% to $647M after prominent projects were closed in 2012 and EPS swung to a $0.63 loss. Wall Street had projected revenue of $757.9M and EPS of $0.22. The company has very clearly performed way below expectations.
Top tier executive retires
John McCormack, the company’s CFO announced that he will be retiring. This will leave the MDR bereft of a top executive. BB&T Capital analysts ploughed and downgraded the stock from a “buy” to a “hold” rating. This fueled its descent. Keeping the weak bottom-line in view, there really is no reason to buy MDR stock today. It would be better to wait it out till the revenue rises significantly before actually jumping in.
McDermott International (NYSE:MDR) had a tumultuous quarter. However, it must be understood that this company’s products are utilized for drilling and related production operations. Growth in this industry is sure to profit it in a huge way.
In Tuesday’s trading session, McDermott International (NYSE:MDR) stock dipped by 20.62%. The shares opened at a price of $7.13 per share, rose to an intraday high of $7.46 and closed at $6.93. Around 20.70M shares were traded in Tuesday’s trading day and the average volume of shares traded over 30 days was 3.32M.
MDR is essentially an engineering, construction, procurement and installation company. It focuses on designing as well as executing complicated offshore O&G projects across the globe. It also provides fully-integrated EPCI services and delivers floating and fixed production-facilities, subsea systems and pipeline installations.