Transocean Ltd Experiences Revenue Beat Despite Non-GAAP EPS Miss
May 3, 2023
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Transocean Ltd ($NYSE:RIG) is a leading offshore drilling contractor for oil and gas wells. The revenue beat was driven by a strong performance from the company’s floater fleet, as well as its rigs operating in the Middle East and Latin America. Despite the positive revenue beat, Transocean’s stock was trading down in after-hours trading due to the miss on non-GAAP EPS.
The company’s total expenses also increased year-over-year, which could have contributed to the EPS miss. Going forward, investors will be looking for Transocean to maintain its revenue performance and potentially improve its profitability metrics in order to drive stock price appreciation.
Stock Price
On Monday, TRANSOCEAN LTD stock opened at $5.8 and closed at $6.0, up by 0.8% from prior closing price of 5.9. The company reported a revenue beat for their second quarter of the year, despite missing their Non-GAAP EPS estimates. The company’s stock was able to increase despite the earnings miss due to their strong revenue results. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Transocean Ltd. More…
| Total Revenues | Net Income | Net Margin |
| 2.58k | -621 | -24.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Transocean Ltd. More…
| Operations | Investing | Financing |
| 448 | -757 | -112 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Transocean Ltd. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 20.44k | 9.64k | 14.95 |
Key Ratios Snapshot
Some of the financial key ratios for Transocean Ltd are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -5.9% | -32.0% | -0.0% |
| FCF Margin | ROE | ROA |
| -10.4% | -0.0% | -0.0% |
Analysis
At GoodWhale, we take a look at the financials of TRANSOCEAN LTD with our Star Chart. According to the analysis, TRANSOCEAN LTD is strong in some areas, medium in profitability and weak in asset, dividend, and growth. We also rate the company’s health score to be 7/10, which indicates that the company is capable to pay off debt and fund future operations. We also classify TRANSOCEAN LTD as an ‘elephant’, a type of company that is rich in assets after deducting off liabilities. Such companies may be interesting for investors who are looking for steady investments with secure returns, as well as investors who prefer to buy and hold their investments for long-term profits. More…
Peers
The company operates a fleet of 79 rigs, including 47 ultra-deepwater rigs, 19 harsh-environment rigs, and 13 midwater rigs. Transocean’s competitors include Equinor ASA, Noble Corp, and Chevron Corp.
– Equinor ASA ($OTCPK:STOHF)
Equinor ASA is a Norwegian multinational oil and gas company headquartered in Stavanger, Norway. It is the world’s largest offshore oil and gas operator, with production in more than 30 countries. The company has a market cap of 119.29B as of 2022 and a Return on Equity of 116.26%. Equinor ASA is engaged in the exploration, development, production, and marketing of oil and gas. The company also has a significant presence in renewable energy, with a growing portfolio of wind and solar projects.
– Noble Corp ($NYSE:NE)
Noble Corp is a leading offshore drilling contractor for the oil and gas industry. The company has a market cap of 4.85B as of 2022 and a Return on Equity of -152.13%. Noble Corp is a publicly traded company on the New York Stock Exchange (NYSE) and is headquartered in London, United Kingdom. The company provides offshore drilling services to major oil and gas companies around the world.
– Chevron Corp ($NYSE:CVX)
Chevron Corp is an American oil and gas company with a market cap of 347.59B as of 2022. The company has a Return on Equity of 18.98%. Chevron is one of the world’s largest oil and gas companies, with operations in over 100 countries. The company’s main business is the exploration, production, and marketing of oil and gas.
Summary
Transocean Ltd recently reported their earnings for the quarter, with a Non-GAAP Earnings Per Share (EPS) of -$0.38, missing estimates by $0.16. Revenue was reported at $649M, beating estimates by $2.71M. This is an overall poor earnings report, but analysts have noted that the revenue beat could be seen as a positive sign, as it indicates that their operations are performing better than projected. Investors should exercise caution when considering Transocean Ltd and should research any proposed investments thoroughly before committing to any decisions.
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