Offshore drilling contractor Seadrill (NYSE: SDRL) will be announcing earnings results this Monday before market open. Here’s what to look for.
Seadrill beat analysts’ revenue expectations last quarter, reporting revenues of $362 million, up 25.3% year on year. It was a strong quarter for the company, with a solid beat of analysts’ EBITDA estimates.
Is Seadrill a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Seadrill’s revenue to be flat year on year, improving from the 8.7% decrease it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Seadrill has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Seadrill’s peers in the mixed or offshore upstream e&p segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Solaris Energy Infrastructure delivered year-on-year revenue growth of 55.3%, beating analysts’ expectations by 6.8%, and Centrus Energy reported revenues up 4.9%, topping estimates by 3%. Solaris Energy Infrastructure traded up 5.4% following the results while Centrus Energy was also up 12.3%.
Read our full analysis of Solaris Energy Infrastructure’s results here and Centrus Energy’s results here.
Investors in the mixed or offshore upstream e&p segment have had steady hands going into earnings, with share prices flat over the last month. Seadrill is up 3.4% during the same time and is heading into earnings with an average analyst price target of $54.29 (compared to the current share price of $49).
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