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].

Core Viewpoint - Oceaneering International, Inc. (OII) is expected to report third-quarter earnings on October 23, with earnings estimated at 44 cents per share and revenues at $673.97 million, reflecting a year-over-year increase of 15.79% in earnings and 6.11% in revenues [1][2]. Group 1: Recent Performance - In the last reported quarter, OII's earnings were 28 cents per share, missing the consensus estimate by 9 cents, attributed to lower operating income from several segments [2]. - Revenues for the last quarter were $668.8 million, exceeding the Zacks Consensus Estimate by 0.6% [2]. - OII has had mixed performance in the past four quarters, beating estimates once and missing three times, with an average negative surprise of 13.58% [2]. Group 2: Revenue Expectations - Revenues for the upcoming quarter are projected to increase to $674 million, up from $668.8 million in the previous quarter, driven by strong performance in energy services and products [3]. - The Offshore Projects Group is expected to grow by 2.1%, while the Total Energy Services and Products segment is anticipated to surge by 79.2% compared to the last quarter [3]. Group 3: Market Dynamics - OII benefits from strong relationships with well-capitalized exploration and production companies, providing revenue visibility and stability [4]. - Demand for OII's services is expected to remain robust due to ongoing offshore energy exploration and production activities, alongside a shift towards cleaner energy sources [4]. - The company's reliance on long-term contracts is likely to insulate it from short-term market volatility, ensuring a stable revenue stream [4]. Group 4: Cost Management - OII's cost of services and products is projected to decrease to $526.5 million in the third quarter, down 4% from $548.6 million in the previous quarter, positively impacting its bottom-line performance [5]. Group 5: Earnings Prediction - The model predicts an earnings beat for OII, supported by a positive Earnings ESP of +2.27% and a Zacks Rank of 3 (Hold) [6].

The market expects Oceaneering International (OII) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended September 2024. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates. The earnings report, which is expected to be released on October 23, 2024, might help the stock move higher if the ...

The decrease in cash related to accounts receivable and contract assets in the six months ended June 30, 2024, reflects the timing of project milestones and customer payments. The decrease in cash related to inventory in the six months ended June 30, 2024, was primarily due to higher activity and related increases in our Manufactured Products and Subsea Robotics inventory. The increase in cash related to current liabilities in the six months ended June 30, 2024, reflects the timing of vendor payments. In th ...