FMC Technologies, Inc. (FTI) reported its third quarter 2010 earnings from continuing operations of 66 cents per share failing to beat Zacks Consensus Estimate by a cent. The Zacks Consensus was 67 cents per share. The earnings also decreased 15.4% sequentially and 9.6% from the prior-year quarter.
Quarter In Detail
Revenues from continuing operations of $960.0 million not only decreased 12.0% from the prior-year quarter but also failed to beat the Zacks Consensus of $1.0 billion. The revenues were dragged down primarily due to lower subsea systems revenues. Revenues from Energy Production Systems decreased 16.9% from the comparable previous year quarter. The Energy Processing Systems revenue increased 15.9% year-on-year.
Income from continued operations decreased 11.7% to $81.1 million.
Corporate expense increased 9.7% to $10.2 million from the prior-year quarter. Other expenses decreased from $21.0 million in the year ago quarter to $15.2 million.
Total backlog increased 28.0% sequentially to $3.6 billion including a 34.0% sequential increase in the subsea systems backlog of $3.1 billion.
During the quarter FMC technologies repurchased 679 thousand shares of common stock for $40.9 million. It has another 2.5 million shares remaining for repurchase authorization.
The effective tax rate for the quarter was 28.7%.
Guidance
Management expects the full year 2010 earnings from continuing operations to be in the range of $2.90 to $2.95 per share. The Zacks estimate for 2010 earnings is $2.91 per share.
Conclusion
Estimates for the quarter had been trending up in the run-up to the earnings release, with four analysts raising estimates in the last 30 days and none reducing estimates. The full-year estimate for next year has been trending up in recent days, with five positive revisions in the last thirty days. The Zacks Consensus Estimate for 2011 of $3.21 is up from $3.19 thirty days ago. The full-year Zacks Consensus Estimate for 2010 also increased to $2.91 from $2.89 thirty days ago.
We currently have a Zacks # 2 rank for FMC Technologies which translates in to a Buyl rating in the short term.
FMC TECH INC (FTI): Free Stock Analysis Report
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