Cameron Matches Estimate, Grows Y/Y - Analyst Blog
February 02 2012 - 10:42AM
Zacks
Oil drilling equipment maker Cameron International
Corp. (CAM) reported fourth quarter earnings per share
(excluding charges associated with the Deepwater Horizon incident)
of 77 cents, exceeding the 69 cents (adjusted) earned in the
prior-year quarter and in line with the Zacks Consensus Estimate.
The year-over-year outperformance reflects robust profitability
from its ‘Drilling & Production Systems’ and ‘Valves &
Measurement’ segments.
Quarterly revenue, at $2,030.7 million, was up 12.3% year over
year and also came above the Zacks Consensus Estimate of $1,878.0
million.
For the fiscal year ended December 31, 2011, Cameron reported
earnings (excluding non-operating items) of $2.67 per share, a
penny ahead of the Zacks Consensus Estimate and up from $2.42 per
share (adjusted) in 2010. Revenues of $6,959.0 million were 13.4%
above the year ago period and also managed to beat the Zacks
Consensus Estimate of $6,821.0 million.
Segment Analysis
Drilling & Production Systems (DPS):
Revenues for the DPS segment totaled $1,216.0 million in the fourth
quarter, up 8.8% from the year-ago quarter, while the DPS segment
EBITDA rose 8.4% year over year to $246.0 million. The improved
performance came on the back of higher level of subsea activity,
where it competes with FMC Technologies Inc.
(FTI).
Valves & Measurement (V&M): Quarterly
revenues in the V&M segment totaled $462.2 million, up 37.5%
year over year. The segment EBITDA increased 51.3% year over year
to $92.3 million. The positive comparisons were driven by strong
North American business activity levels.
Process & Compression Systems (PCS):
Revenues in the PCS segment almost remained flat year over year at
$352.5 million. However, the segment EBITDA witnessed a
year-over-year fall of 17.2% to $38.0 million.
Backlog
During the quarter, Cameron received orders totaling $1,914.8
million, up 11.9% year over year, mainly reflecting increases
across the V&M and PCS segments. The composition of current
order booking is 49% for DPS, 28% for V&M and 23% for PCS.
As of December 31, 2011, total backlog stood at $5,969.1
million, up from the year-earlier level of $4,817.1 million, driven
by higher backlog across all segments.
Capital Expenditure & Balance
Sheet
During the quarter, Cameron’s capital expenditure amounted to
$159.6 million, while the full-year outlay came to $388.1 million.
As of December 31, 2011, cash and cash equivalents stood at $898.9
million, while total long-term debt (including the current portion)
was $1,584.8 million (with debt-to-capitalization ratio of
25.2%).
Guidance
Management gave its EPS guidance range for fiscal 2012 at
$3.20–$3.30, while the first quarter profitability is likely to be
in the range of 50–55 cents.
Our Recommendation
Cameron currently retains a Zacks #4 Rank, which translates into
a short-term Sell rating. Longer-term, we are maintaining our
Neutral recommendation on the stock.
CAMERON INTL (CAM): Free Stock Analysis Report
DR PEPPER SNAPL (DPS): Free Stock Analysis Report
FMC TECH INC (FTI): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
Cooper Cameron (NYSE:CAM)
Historical Stock Chart
From Apr 2024 to May 2024
Cooper Cameron (NYSE:CAM)
Historical Stock Chart
From May 2023 to May 2024