What's in Store for Oceaneering International Stock in Q1 Earnings?

Core Viewpoint - Oceaneering International, Inc. (OII) is expected to report first-quarter earnings on April 23, with earnings estimated at 36 cents per share and revenues at $663.56 million, reflecting a year-over-year revenue increase of 10.76$713 million, exceeding the Zacks Consensus Estimate by 4.5% [2]. - OII has missed earnings estimates in each of the last four quarters, with an average negative surprise of 28.40% [3]. Group 2: Factors Influencing Q1 Performance - OII's revenues are expected to have improved due to strong demand from the offshore energy industry, particularly in deepwater exploration and production [4]. - The anticipated revenue growth is driven by robust performance in the energy services and products segments, with expected growth of 14.6% in Subsea Robotics and 32% in Offshore Projects Group compared to the previous year [5]. - Strong relationships with financially stable exploration and production companies provide OII with consistent revenues and stability [6]. Group 3: Demand and Cost Considerations - Demand for OII's services is expected to remain strong due to ongoing offshore energy exploration and production, supported by rising global energy consumption and a shift to cleaner energy [7]. - However, OII's costs are projected to increase, with the cost of services and products expected to reach $546.8 million, a 7.3$55.7 million to $59.7 million [8]. Group 4: Earnings Prediction - The model predicts an earnings beat for OII, supported by a positive Earnings ESP of +4.23% and a Zacks Rank of 3 [10][11].