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Transocean to Report Q1 Earnings: What's in the Offing for the Stock?
RIGTransocean(RIG) ZACKS·2025-04-25 11:20

Core Viewpoint - Transocean Ltd. is expected to report a first-quarter 2025 earnings loss of 12 cents per share, with revenues estimated at 885.84million,reflectingasignificantyearoveryeardecreaseinearningsbutanincreaseinrevenues[1][3].Group1:PreviousQuarterPerformanceInthelastreportedquarter,Transoceanpostedanadjustednetlossof9centspershare,missingtheconsensusestimateofaprofitof1cent,andadjustedrevenuesof885.84 million, reflecting a significant year-over-year decrease in earnings but an increase in revenues [1][3]. Group 1: Previous Quarter Performance - In the last reported quarter, Transocean posted an adjusted net loss of 9 cents per share, missing the consensus estimate of a profit of 1 cent, and adjusted revenues of 952 million, which also fell short of the 959millionestimate[2].Thecompanyhashadmixedresultsinthepastfourquarters,beatingestimatestwiceandmissingtwice,resultinginanaveragenegativesurpriseof227.65959 million estimate [2]. - The company has had mixed results in the past four quarters, beating estimates twice and missing twice, resulting in an average negative surprise of 227.65% [3]. Group 2: Revenue and Cost Projections - The Zacks Consensus Estimate for the first quarter indicates a 300% year-over-year decrease in earnings, while revenues are projected to increase by 15.49% from 767 million in the previous year [3]. - Revenue growth is anticipated in the Ultra-Deepwater Floaters segment, expected to rise by 16.3% to 661.9million,andtheHarshEnvironmentFloaterssegmentisprojectedtosurgeby36.7661.9 million, and the Harsh Environment Floaters segment is projected to surge by 36.7% to 223.5 million [5]. - Total costs and expenses are expected to increase by 19.2% year-over-year to 906million,withOperatingandMaintenancecostsrisingby17.8906 million, with Operating and Maintenance costs rising by 17.8% to 616.2 million and depreciation and amortization expenses increasing by 28.5% to $237.7 million [6][7]. Group 3: Earnings Prediction Model - The current model does not predict an earnings beat for Transocean, as the Earnings ESP is -12.50%, indicating a lower likelihood of exceeding earnings expectations [9]. - Transocean holds a Zacks Rank of 3, suggesting a neutral outlook [10].