TechnipFMC (NYSE:FTI) Q3 Earnings: What Can You Expect?

in EARNINGS/INVESTING IDEAS by

TechnipFMC plc (NYSE:FTI) is scheduled to report Q3 earnings results after markets close for trading on October 21, 2020.

The company is expected to report earnings of $0.21/share on revenue of $3.259 billion. The consensus earnings per share (EPS) of $0.21/share is based on a poll of 18 analysts and represents a growth in eps of 71.1% over the same quarter last year, when the company reported earnings of $0.12/share.

The revenue forecast of $3.259 billion based on a poll of 17 analysts implies a year-over-year (YoY) decline in revenue of −2.3%. Last year the company reported $3.335 billion in revenue for the quarter.

Expected to report EPS growth of 71.1% for Q3, 2020
Metric Expected Prior Year YoY Change
Revenue $3,259.12 $3,335.10 −2.3%
EPS $0.21 $0.12 71.1%

Earnings Call Trends

Historically, management has exceeded analyst expectations 2 out of the last 8 tracked quarters, and missed expectations 6 quarters.

What are your expectations from TechnipFMC plc for earnings this quarter? Let us know in the comments!

Analyst Expected vs. Reported EPS
Quarter Expected Reported Surprise Result
Q2, 2020 $0.05 $0.09 65.8% Beat
Q1, 2020 $0.21 -$0.11 −152.3% Missed
Q4, 2019 $0.43 $0.03 −93.1% Missed
Q3, 2019 $0.51 $0.12 −76.3% Missed
Q2, 2019 $0.35 $0.39 10.4% Beat
Q1, 2019 $0.31 $0.06 −80.7% Missed
Q4, 2018 $0.37 -$0.09 −124.6% Missed
Q3, 2018 $0.39 $0.31 −21.0% Missed

In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report. After the last earnings report for the period ending June 30, 2020, the stock price reacted by falling −1.3%.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
July 28, 2020 $7.81 $7.71 −1.3% Decline
July 28, 2020 $7.53 $7.71 2.39% Increase
July 28, 2020 $15.27 $15.30 0.20% Increase
July 28, 2020 $23.51 $20.68 −12.04% Decline

The other question to consider is one of earnings manipulation. There is a lot of pressure on management each quarter to deliver on earnings expectations. The Beneish M-Score is a statistical model that provides some insight into whether the company might be manipulating earnings. With a Beneish M-Score of −4.29, the model suggests that the company is not likely to be an earnings manipulator. A value of −4.29 implies a 0.0% chance of earnings manipulation.

Fundamentals And Technical Analysis

TechnipFMC plc is currently trading at $7.14/share, up 3.8% for the day. The company is trading at approximately 29.7% of its 52-week high of $23.73/share. The company’s stock price is down −7.4% since the last earnings report and up 1.0% over the previous week.

The company’s 14 Day Relative Price Index (RSI) of 46.14 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.


NYSE:FTI Stock Price Chart
Source: Finbox

The current share price implies a price-to-earnings (P/E) multiple of −0.56 and a forward P/E multiple of 16.23.

TechnipFMC plc’s current share price also implies a price-to-book (P/B) multiple of 0.77. The following table summarizes some other key fundamental ratios:

Data as of October 19, 2020
Metric Value
Last Reported Fiscal Period Key FY2020.Q2
Period End Date June 30, 2020
Stock Price (Current) $7.14
P/E Ratio −0.6x
P/E Ratio (Fwd) 16.2x
PEG Ratio 0.0
Total Debt / Total Capital 63.0%
Levered Free Cash Flow $225.4 million
EV / EBITDA 2.4x

Finbox

TechnipFMC plc is a mid-cap stock with a market capitalization of $3.092 billion and a total enterprise value of $3.701 billion. The company operates in the Energy sector and the Energy Equipment & Services industry.

TechnipFMC plc engages in the oil and gas projects, technologies, and systems and services businesses. It operates through three segments: Subsea, Technip Energies, and Surface Technologies. The Subsea segment designs and manufactures products and systems; performs engineering, procurement, and project management; and provides services used by oil and gas companies involved in offshore exploration and production of crude oil and natural gas. The Technip Energies segment designs and builds onshore facilities related to the production, treatment, transformation, and transportation of hydrocarbons and renewable feedstock; and designs, manufactures, and installs fixed and floating platforms for the offshore production and processing of oil and gas reserves. The Surface Technologies segment designs and manufactures systems, as well as provides services used by oil and gas companies involved in the land and shallow water exploration and production of crude oil and natural gas. This segment also designs, manufactures, and supplies technologically advanced wellhead systems, and high pressure valves and pumps used in stimulation activities for oilfield service companies, as well as provides installation, flowback, and other services for exploration and production companies. The company operates in Europe, Russia, Central Asia, the Americas, the Asia Pacific, Africa, and the Middle East. TechnipFMC plc was incorporated in 2015 and is headquartered in London, the United Kingdom.

Expertise: financial modeling, mergers & acquisitions. Andy is also a founder at finbox.io, where he’s focused on building tools that make it faster and easier for investors to do investment research. Andy’s background is in investment banking where he led the analysis on over 50 board advisory engagements involving mergers and acquisitions, fairness opinions and solvency opinions. Some of his board advisory highlights: - Sears Holdings Corp.’s $620 mm spin-off via rights offering of Sears Outlet, Hometown Stores and Sears Hardware Stores. - Cerberus Capital Management’s $3.3 bn acquisition of SUPERVALU Inc.’s New Albertsons, Inc. assets. Andy can be reached at andy@finbox.io or at +1 (516) 778-6257.

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