What's in Store for Oceaneering International Stock in Q3 Earnings?

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].