Core Viewpoint - Oceaneering International (OII) is expected to report a year-over-year increase in earnings and revenues for the quarter ended December 2024, with a consensus outlook that will significantly influence its stock price depending on actual results compared to estimates [1][2]. Earnings Expectations - The consensus estimate for OII's quarterly earnings is $0.45 per share, reflecting a year-over-year increase of +136.8%. Revenues are anticipated to be $681.86 million, which is a 4.2% increase from the previous year [3]. Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating that analysts have not significantly altered their initial estimates during this period [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that the Most Accurate Estimate for OII is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +10.11%, indicating a bullish sentiment among analysts regarding the company's earnings prospects [10]. Historical Performance - In the last reported quarter, OII was expected to post earnings of $0.44 per share but only achieved $0.36, resulting in a surprise of -18.18%. The company has not beaten consensus EPS estimates in any of the last four quarters [12][13]. Stock Movement Potential - The stock may experience upward movement if the upcoming earnings report exceeds expectations, while a miss could lead to a decline. The sustainability of any immediate price change will depend on management's discussion of business conditions during the earnings call [2][14]. Investment Considerations - While OII appears to be a compelling earnings-beat candidate, investors should consider other factors beyond earnings surprises when making investment decisions [16].

Group 1 - Oceaneering International, Inc. (OII) has ordered 100 units of Exail's Octans 9 Attitude Heading Referencing Systems (AHRS) to enhance its offshore survey and positioning capabilities [1] - The acquisition of Octans 9 AHRS units demonstrates OII's commitment to using high-performance navigation systems, which will improve accuracy and reliability in offshore operations [2] - The Octans 9 AHRS features advanced technology, including compact design, lower power consumption, and integrated GNSS sensors, providing real-time attitude and heading data [3] Group 2 - The order reinforces the strong relationship between Oceaneering and Exail, confirming the reliability and quality of Exail's technology [4] - Oceaneering is recognized as a leading supplier of offshore equipment and technology solutions to the energy industry [5] - Investors may consider other top-ranked stocks in the energy sector, such as ARC Resources Ltd., Equinor ASA, and Gulfport Energy Corporation, which have favorable growth prospects [6]

Core Insights - Oceaneering International, Inc. (OII) is a leading supplier of offshore equipment and technology solutions, known for its innovative technologies such as remotely operated vehicles (ROVs) and subsea robotics, which support global infrastructure [1] - The company has diverse services across various sectors, including energy, manufacturing, defense, and aerospace, allowing it to maintain a solid market position and address complex global challenges [1][6] Financial Performance - OII's earnings per share are projected to be $1.76 for 2025, reflecting a year-over-year growth of 28.83%, indicating strong fundamentals and growth potential [3] - The Zacks Consensus Estimate for the current year (2024) is $1.37, with a year-over-year growth estimate of 71.25% [4] - In Q3 2024, OII generated a free cash flow of $67 million and ended the quarter with a cash balance of $452 million, enhancing its financial liquidity [7] Segment Performance - The Subsea Robotics segment achieved a 36% EBITDA margin in Q3, with a fleet utilization rate of 69%, indicating steady demand despite oil price fluctuations [8] - The Manufactured Products segment backlog increased to $671 million, up $115 million year-over-year, with a book-to-bill ratio of 1.21, signifying strong demand and potential revenue stability [9] Market Position and Risks - OII's diverse revenue streams provide stability during downturns in any single sector, allowing it to capitalize on growth opportunities across industries [6] - Seasonal declines are expected to impact Q4 results in the Subsea Robotics and Aerospace and Defense Technologies segments, potentially reducing overall utilization rates and revenues [10] - OII's stock has outperformed the oil and gas field services sub-industry with an 8.4% increase over the past three months, but it has underperformed compared to peers like Baker Hughes and TechnipFMC [12] - The company remains dependent on oil and gas, and any changes in oil prices or reduced offshore drilling activity could significantly impact demand for its services [15]

Core Viewpoint - Oceaneering International (OII) is experiencing significant selling pressure, with a 15.9% decline over the past four weeks, but is now positioned for a potential trend reversal as it enters oversold territory, supported by analyst expectations of better-than-previously predicted earnings [1]. Group 1: Technical Indicators - The Relative Strength Index (RSI) is a key technical indicator used to identify oversold conditions, with a reading below 30 typically indicating that a stock is oversold [2]. - OII's current RSI reading is 26.94, suggesting that the heavy selling may be exhausting itself and a trend reversal could be imminent [3]. Group 2: Fundamental Indicators - There is a strong consensus among sell-side analysts that OII's earnings estimates for the current year are being raised, resulting in a 0.4% increase in the consensus EPS estimate over the last 30 days [6]. - OII holds a Zacks Rank 2 (Buy), indicating it is in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, which further supports the potential for a near-term turnaround [6].

Core Viewpoint - Investors are seeking growth stocks that can deliver above-average returns, but identifying such stocks is challenging due to inherent risks and volatility [1] Group 1: Growth Stock Identification - The Zacks Growth Style Score system aids in identifying promising growth stocks by analyzing real growth prospects beyond traditional metrics [2] - Oceaneering International (OII) is highlighted as a recommended stock with a favorable Growth Score and a top Zacks Rank [2] Group 2: Earnings Growth - Earnings growth is a critical factor for growth investors, with double-digit growth indicating strong prospects [3] - Oceaneering International has a historical EPS growth rate of 144.1%, with projected EPS growth of 75% this year, significantly surpassing the industry average of 12.8% [4] Group 3: Asset Utilization - The asset utilization ratio, or sales-to-total-assets (S/TA) ratio, is an important metric for growth investing [5] - Oceaneering International has an S/TA ratio of 1.14, indicating greater efficiency in generating sales compared to the industry average of 0.98 [6] Group 4: Sales Growth - The company is also well-positioned for sales growth, with expected sales growth of 8.4% this year, while the industry average is 0% [6] Group 5: Earnings Estimate Revisions - Positive trends in earnings estimate revisions correlate strongly with near-term stock price movements [7] - The current-year earnings estimates for Oceaneering International have been revised upward, with a 0.4% increase in the Zacks Consensus Estimate over the past month [8] Group 6: Overall Positioning - Oceaneering International has achieved a Growth Score of B and a Zacks Rank of 2 due to positive earnings estimate revisions, positioning it well for outperformance [9]

It has been about a month since the last earnings report for Oceaneering International (OII) . Shares have added about 17% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Oceaneering International due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers. Oceaneering Internati ...

Earnings and Operating Income - Diluted earnings per share for Q3 2024 were $0.40, up from $0.29 in the same period last year, and $0.89 for the nine-month period, up from $0.52[91] - Operating income increased by 23% in Q3 2024 on a 7% revenue increase, and by 26% for the nine-month period on a 10% revenue increase[91] Segment Performance - Subsea Robotics segment revenue for Q3 2024 was $215.7 million, with operating income at $65.7 million, representing a 30% operating income margin[97] - Manufactured Products segment revenue for Q3 2024 was $143.7 million, with operating income at $11.3 million, representing an 8% operating income margin[97] - Offshore Projects Group segment revenue for Q3 2024 was $147.5 million, with operating income at $20.3 million, representing a 14% operating income margin[97] - Total Energy business revenue for Q3 2024 was $580.6 million, with operating income at $98 million, representing a 17% operating income margin[97] - IMDS segment revenue increased but operating income declined due to a one-time non-cash charge of $24 million related to the divestiture of the Maritime Intelligence division in September 2024[104] - ADTech segment revenue for the three-month period ended September 30, 2024, was $99.2 million, a slight increase from $98.6 million in the same period in 2023, but operating income decreased to $12.2 million from $14.1 million[105] Capital Expenditures and Share Repurchases - Cash used for maintenance capital expenditures was $36 million, and growth capital expenditures were $37 million for the nine-month period ended September 30, 2024[92] - The company repurchased shares of common stock for approximately $10 million during the first nine months of 2024[92] - The company repurchased 0.4 million shares of its common stock for approximately $10 million in the three months ended September 30, 2024[119] - The company repurchased 0.4 million shares for approximately $10 million in the three-month period ended September 30, 2024[121] Financial Position and Cash Flow - As of September 30, 2024, the company had net working capital of $611 million, including cash and cash equivalents of $452 million, and $215 million of unused commitments under its Revolving Credit Facility[113] - Cash flows from operating activities for the nine-month period ended September 30, 2024, were $74.8 million, up from $57.1 million in the same period in 2023[115] - Capital expenditures for the nine-month period ended September 30, 2024, were $73 million, with over half allocated to the Subsea Robotics segment[117] Backlog and Utilization Rates - Manufactured Products backlog as of September 30, 2024, was $671 million, up from $556 million in the same period last year[97] - ROV utilization rate was 69% for both Q3 2024 and Q3 2023, with 15,796 ROV days utilized out of 23,000 available days in Q3 2024[97] Expenses and Income - Unallocated expenses for the three-month period ended September 30, 2024, decreased to $38.9 million from $42.2 million in the same period in 2023, primarily due to lower professional fees[106] - Interest income for the three-month period ended September 30, 2024, decreased to $3.3 million from $3.7 million in the same period in 2023 due to lower cash balances[109] - Foreign currency transaction gains for the nine-month period ended September 30, 2024, were $3.7 million compared to a loss of $3.6 million in the same period in 2023[110] - Estimated income tax payments for the full year of 2024 are projected to be between $85 million and $95 million[112] Equity and Foreign Currency Adjustments - The company recorded net adjustments to equity accounts of $13 million and $(11) million in the three-month periods ended September 30, 2024 and 2023, respectively[126] - Foreign currency gains (losses) were $0.4 million and $0.9 million in the three-month periods ended September 30, 2024 and 2023, respectively[127] Investments and Bonds - The company purchased $7.0 million of U.S. dollar equivalent Angolan bonds in the third quarter of 2024, maturing in February 2031[128] - The fair market value of the Angolan bonds was estimated to be $7.0 million as of September 30, 2024[129] - The company had $6.2 million of U.S. dollar equivalent Angolan bonds that matured on September 1, 2023, and received cash proceeds of $6.2 million[129] Internal Controls and Reporting - The company concluded that its disclosure controls and procedures were effective as of September 30, 2024[131] - There was no change in the company's internal control over financial reporting during the three months ended September 30, 2024[132]

Oceaneering International, Inc. (OII) reported an adjusted third-quarter 2024 profit of 36 cents per share, which missed the Zacks Consensus Estimate of 44 cents.  This was due to lower-than-expected operating income from the company’s Subsea Robotics, Offshore Projects Group, Integrity Management & Digital Solutions and Aerospace and Defense Technologies segments.However, the bottom line was flat year over year.  This can be attributed to year-over-year strong operating income from the Manufactured Product ...

Oceaneering International (OII) came out with quarterly earnings of $0.36 per share, missing the Zacks Consensus Estimate of $0.44 per share. This compares to earnings of $0.38 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -18.18%. A quarter ago, it was expected that this oilfield services company would post earnings of $0.37 per share when it actually produced earnings of $0.28, delivering a surprise of -24.32%.Over the las ...

Financial Performance - Net income for Q3 2024 was $41.2 million, or $0.40 per share, on revenue of $680 million, representing a 7% increase in revenue year-over-year [2]. - Adjusted EBITDA for Q3 2024 was $98.1 million, with consolidated operating income at $71.3 million, a 23% increase compared to the same quarter last year [2][3]. - Revenue for the three months ended September 30, 2024, was $679,811,000, an increase of 7% compared to $635,180,000 for the same period in 2023 [14]. - Operating income for the three months ended September 30, 2024, was $71,333,000, representing a 23% increase from $57,929,000 in the prior year [14]. - Net income for the three months ended September 30, 2024, was $41,237,000, compared to $29,812,000 for the same period in 2023, marking a 38% increase [14]. - Adjusted diluted EPS for the three months ended September 30, 2024, was $0.36, up from $0.29 in the prior year, reflecting a 24.1% increase [22]. - For the nine months ended September 30, 2024, the company reported a net income of $91,369 thousand, up from $52,874 thousand in the prior year, representing a significant increase of 73% [24]. Cash Flow and Financial Position - The cash flow from operating activities was $91.9 million, and free cash flow was $67.0 million, with an ending cash position of $452 million [2]. - The company reported cash flow from operating activities of $73,262,000 for the nine months ended September 30, 2024, compared to $66,681,000 for the same period in 2023 [18]. - The estimated free cash flow for the year ending December 31, 2024, is projected to be between $110,000 thousand and $150,000 thousand [30]. Segment Performance - Operating income for the Subsea Robotics segment increased by 37% in Q3 2024, with an EBITDA margin of 36% compared to 31% in the same period last year [3][4]. - Operating income for the Offshore Projects Group declined by 24% due to changes in project mix and associated costs, with an operating income margin decreasing from 18% to 14% [4]. - Subsea Robotics segment revenue increased to $215,715,000 for the three months ended September 30, 2024, up from $197,343,000 in the same period last year, with an operating income margin of 30% [16]. - The Manufactured Products segment reported revenue of $143,734,000 for the three months ended September 30, 2024, an increase from $122,877,000 in the same period last year, with an operating income margin of 8% [16]. - The Offshore Projects Group generated revenue of $147,539,000 for the three months ended September 30, 2024, down from $150,273,000 in the previous year, with an operating income margin of 14% [16]. - The Aerospace and Defense Technologies segment reported revenue of $99,201,000 for the three months ended September 30, 2024, slightly up from $98,631,000 in the same period last year, with an operating income margin of 12% [16]. Backlog and Future Guidance - The Manufactured Products backlog was $671 million, an increase of $115 million compared to the same period in 2023, with a book-to-bill ratio of 1.21 [4]. - Revised full-year 2024 guidance for consolidated adjusted EBITDA is projected to be between $340 million and $350 million, representing a 19% increase over 2023 [3][6]. - Initial guidance for 2025 consolidated EBITDA is expected to be in the range of $400 million to $430 million, indicating a 20% year-over-year increase [3][6]. - Backlog at the end of the period was $671,000,000, compared to $556,000,000 in the prior year, indicating strong future revenue potential [16]. Operating Margins and Efficiency - Total operating income margin for the company improved to 10% for the three months ended September 30, 2024, compared to 9% in the same period last year [16]. - The EBITDA margin for the three months ended September 30, 2024, was 14%, consistent with the previous quarter and an improvement from 13% in the same period last year [26]. - The company reported an EBITDA margin of 13% across all segments, with specific margins of 31% for SSR, 9% for MP, and 22% for OPG [33]. - The adjusted EBITDA margin remained consistent at 13% across all segments, indicating stable operational efficiency [35].