TechnipFMC (FTI) Posts Q4 Loss On Impairment Cost, Cuts Capex

Zacks Investment Research | Feb 21, 2019 05:49AM ET

TechnipFMC plc (NYSE:FTI) came up with unsatisfactory quarterly results on Feb 20, hit by massive impairment and accounting charges of more than $2 billion, leaving investors disappointed. The oilfield services provider swung to fourth-quarter 2018 adjusted loss of 9 cents a share, lagging the Zacks Consensus Estimate of earnings of 37 cents. This negative earnings surprise of 124.32% was primarily attributed to operating loss of $1.7 billion in the firm’s subsea segment, which missed the Zacks Consensus Estimate of a profit of $92 million. The bottom line also deteriorated sharply from the year-ago earnings of 20 cents a share due to high impairment charges related to goodwill and fixed assets incurred in the quarter under review.

Owing to the dismal quarterly results, TechnipFMC ended 2018 in the red territory, incurring net loss of $1,921.6 million against reported income of $113 million in 2017.

Fourth-quarter revenues came in at $3,323 million, which lagged the Zacks Consensus Estimate of $3,410 million and also decreased 9.8% from the prior-year figure of $3,683 million.

However, on an encouraging note, TechnipFMC’s total backlog at the end of the quarter was $14,560 million, reflecting year-over-year growth of 12%. While quarterly inbound orders marked a decline, full-year orders rose 40.2% from the prior-year quarter to $14,291 million.

TechnipFMC plc Price, Consensus and EPS Surprise

Zacks Investment Research

Get The News You Want

Read market moving news with a personalized feed of stocks you care about.

Get The App

Written By: Zacks Investment Research

Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

Show moreShow Less