Engineering and construction company McDermott International Inc. (MDR), Thursday reported a swing to profit in the fourth quarter, as revenues grew 22 percent mostly on a strong performance from Asia Pacific segment.
Nevertheless, shares for the McDermott slipped four percent in after hours trade, after its earnings for the quarter fell short of analysts' estimates, while revenues trumped expectations. The company has also forecast its full-year 2013 revenue below current Street estimates.
McDermott's revenues for the quarter grew 22 percent to $995.95 million from $816.18 million last year. Analysts expected revenues of $981.49 million for the quarter.
McDermott attributed the revenue growth to a strong performance at its Asia Pacific segment, with an increase of 36 percent reflecting increased marine activity on a subsea project. Increased revenues from Middle East and Atlantic segments also contributed to revenue growth.
Houston, Texas-based McDermott reported a fourth-quarter profit of $40.54 million or $0.17 per share, compared to a loss of about $9.97 million or $0.04 per share last year. Analysts polled by Thomson Reuters estimated earnings of $0.23 per share for the quarter. Analysts' estimates typically exclude special items.
Total costs and expenses increased to $912.97 million from $779.70 million last year.
Looking forward to full year 2013, the company expects revenue of $3 billion. Analysts currently estimate revenues of $3.12 billion for the year.
Chief Executive Stephen Johnson said, "With increased bidding activity and the company's continued balance sheet strength, we believe McDermott is well positioned to meet the growing customer demand in each of our market segments."
MDR closed Thursday's trading at $12.72, down $0.23 or 1.78% on the NYSE. The stock further slipped $0.57 or 4.48%, in after hours trade.
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