FMC Technologies Earnings: Misses Expectations as Profit Falls

S&P 500 (NYSE:SPY) component FMC Technologies Inc. (NYSE:FTI) reported its results for the third quarter. FMC Technologies is a global provider of technologically sophisticated systems and products for the energy industry.

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FMC Technologies Inc. Earnings Cheat Sheet

Results: Net income for the oil field machines and equipment fell to $98.9 million (41 cents per share) vs. $121.1 million (50 cents per share) a year earlier. This is a decline of 18.3% from the year-earlier quarter.

Revenue: Rose 10.2% to $1.42 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: FMC Technologies Inc. fell short of the mean analyst estimate of 57 cents per share. It fell short of the average revenue estimate of $1.48 billion.

Quoting Management: “Subsea Technologies’ margins increased again this quarter to 12.4 percent,” said John Gremp, Chairman and CEO of FMC Technologies. “Execution has improved and we expect continued solid performance in the coming quarters. We remain positive on the overall subsea market outlook, and expect Subsea Technologies’ revenue to approach $4 billion in 2012.”

Key Stats:

The company has seen double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 26.2%, with the biggest boost coming in the fourth quarter of the last fiscal year when revenue rose 36.1% from the year earlier quarter.

The company has missed analyst estiamtes for four quarters in a row. It fell short by 2 cents in the second quarter, by 4 cents in the first quarter, and by 10 cents in the fourth quarter of the last fiscal year.

Last quarter’s profit decrease interrupts a two-quarter streak of profit increases. Net income rose 18.7% in the second quarter and 16% in the first quarter.

Looking Forward: For next quarter, analysts have a more positive outlook about the company’s expected results. The average estimate for the fourth quarter is 64 cents per share, up from 63 cents ninety days ago. The average estimate for the fiscal year is $2.09 per share, down from $2.13 ninety days ago.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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