Transocean Reports Earnings Results, Falls Short of Estimates

Transocean (NYSE:RIG) announced its earnings results on Monday. The offshore drilling services provider reported a loss of ($0.09) earnings per share (EPS) for the latest quarter. This figure fell short of the consensus estimate of $0.02 by a margin of ($0.11), according to reports. Additionally, Transocean recorded a negative return on equity of 1.48%, and a negative net margin of 18.81%. For the quarter, the company's revenue was $952.00 million, which also did not meet the analysts' expectations of $962.28 million.

Transocean Stock Performance

On Wednesday, Transocean's stock experienced a decline of 0.7%. The shares dropped $0.03, finishing the trading session at $3.53. A total of 5,307,912 shares were exchanged, which is lower than the average volume of 25,759,209 shares. The company currently holds a quick ratio of 1.34, a current ratio of 1.64, and a debt-to-equity ratio of 0.64. Over the past year, the stock has seen a low of $3.38 and a high of $6.88. Its 50-day moving average stands at $3.82, while the 200-day moving average is at $4.23. With a market capitalization of $3.09 billion, Transocean has a price-to-earnings ratio of -4.69 and a price-to-earnings-growth ratio of 0.85.

Insider Transactions

Additionally, there has been some insider activity at Transocean. On January 10th, Executive Vice President Roderick James Mackenzie sold 22,000 shares of company stock at an average price of $4.05. This amounted to a total transaction value of $89,100. Following this sale, Mackenzie now holds 229,596 shares of Transocean, worth around $929,863.80. The transaction accounted for an 8.74% decrease in his ownership. According to filings with the SEC, insiders own about 13.16% of the company's shares.

Analysts Adjust Price Targets

Several research analysts have re-evaluated their price targets for Transocean in light of the recent earnings announcement. TD Cowen has reduced its target price from $6.50 to $5.50 and maintains a 'hold' rating on the stock as of January 8th. On January 15th, Evercore ISI downgraded the stock from 'outperform' to 'in-line' and lowered their target price from $6.00 to $5.00. Susquehanna also adjusted its target price from $7.00 to $6.50 while reaffirming a 'positive' rating on the stock on November 1st. Moreover, StockNews.com has issued a 'sell' rating on Transocean shares. Finally, JPMorgan Chase upgraded Transocean from 'underweight' to 'neutral,' setting a new price target of $5.00 on December 6th. Currently, two analysts rate the stock as a sell, six as a hold, and three as a buy, leading to an average rating of 'Hold' with a target average price of $5.94.

About Transocean

Transocean Ltd. and its subsidiaries provide offshore contract drilling services for oil and gas wells on a global scale. The company supplies mobile offshore drilling rigs along with the equipment and personnel necessary to drill these wells. Transocean operates a diverse fleet of offshore drilling units, which includes ultra-deepwater floaters and drilling units designed for harsh environments.

Transocean, Earnings, Estimates