Shares of Houston-based oilfield services provider McDermott International (MDR) have had a rough 12 months, falling 27% in that period. However, year to date the company is actually up 32%, benefiting greatly from the rally in crude prices since mid-February. McDermott seems more tied to oil prices than usual, with the company's stock performance matching the commodity's price fluctuations almost perfectly.
The company released its latest quarterly report on Thursday following the closing bell, posting adjusted earnings of $0.13 per share, well ahead of the $0.01 per share analysts were expecting for the period.
McDermott reported revenue of $729 million for the quarter, also easily topping Wall Street's $670 million expectations.
"Overall, we have had a very positive start to the year, with our results reflecting strong project execution across the entire portfolio and operational profitability on an adjusted basis in all three areas," CEO David Dickson said in a statement.
For the year, McDermott upped its earnings guidance to $0.06 per share on revenue of $2.7 billion. The company had previously modeled for a break-even year on revenue of about $2.9 billion. "Despite the current market conditions, we see continued bidding activity in our core markets and a steady level of opportunities in our revenue pipeline," Dickson stated.
As commodity prices improve, McDemott's fortunes have, too. If commodity prices can continue their rally, McDermott's spot on our "stressed out" list may not be necessary.