Why Is Oceaneering International (OII) Down 7.3% Since Last Earnings Report?

Core Viewpoint - Oceaneering International's recent earnings report showed a mixed performance, with adjusted profits missing estimates but overall revenues increasing year-over-year, indicating potential growth despite current challenges [2][3]. Financial Performance - The first-quarter 2024 adjusted profit was 14 cents per share, missing the Zacks Consensus Estimate of 30 cents, primarily due to lower operating income from the Offshore Projects Group [2]. - Total revenues reached $599.1 million, missing the Zacks Consensus Estimate of $614 million, but representing an 11.6% increase from $537 million in the same quarter last year [3]. Segmental Information - Subsea Robotics: Revenues were $186.9 million, up from $169.2 million year-over-year, but below the projection of $195.4 million. Operating income was $44.2 million, compared to $33.7 million a year ago [5]. - Manufactured Products: Revenues increased to $129.5 million from $112.9 million, exceeding projections. Operating profit rose to $13.2 million from $11.3 million [6]. - Offshore Projects Group: Revenues increased by 10.4% to $115.1 million, but operating income fell significantly to $844,000 from $5.5 million year-over-year [8]. - Integrity Management & Digital Solutions: Revenues rose to $69.7 million from $60.1 million, with operating income slightly increasing to $3.6 million [9]. - Aerospace and Defense Technologies: Revenues grew to $98 million from $90.5 million, with operating income rising to $12.8 million from $8.5 million [10]. Capital Expenditure & Balance Sheet - Capital expenditure for the first quarter totaled $25 million. As of March 31, 2024, cash and cash equivalents were $354.7 million, with long-term debt at approximately $478.2 million, resulting in a debt-to-total capital ratio of 43.2% [11]. Outlook - Oceaneering anticipates significant increases in activity levels and operating profitability for the Offshore Projects Group, Subsea Robotics, and Manufactured Products in the second quarter of 2024 [12]. - Integrity Management & Digital Solutions and Aerospace and Defense Technologies are expected to remain flat, with slight declines in operating profitability [13]. - The company projects second-quarter 2024 EBITDA in the range of $80-$90 million, reflecting a mid-teens percentage increase in revenues [13][14]. Industry Performance - Oceaneering International is part of the Zacks Oil and Gas - Field Services industry, which has seen mixed performance. Liberty Oilfield Services, a peer in the industry, reported a revenue decline of 15% year-over-year [18][19].