Subscribe to RSSENSCO: A Mixed Bag of Revisions – Analyst Blog
Despite modestly better-than-expected fourth quarter results, earnings estimates of the first two quarters and full-year 2010 for ENSCO International plc ( ESV ) are on a downtrend. However, for 2011, estimates are on the rise. Fourth Quarter Recap Earnings per share from continuing operations came in at $1.24 in the fourth quarter of 2009, topping the Zacks Consensus Estimate of $1.22. However, on a year-over-year basis, ENSCO’s earnings per share declined 42%, while revenues were down 17.4% to $499.6 million. For more details please see our earnings blog by clicking on this link . Key Facts • With the redomestication to the UK, the company currently expects its 2010 effective tax rate will be approximately 16% to 17% versus 19% in the last year. As the restructuring activities are expected to wrap up by mid-year, ENSCO will not get the full benefit of these changes in 2010. However, it expects to achieve an effective tax rate below 15% in 2011. • ENSCO’s 2010 deepwater revenue is estimated to be about $525 million, down from the previous guidance of $600 million. Total costs for 2010 were guided up 6% and total capital expenditures were guided down 14% to $740 million in 2010. • The company foresees a mixed bag in jackup utilization this year. As a result of this, 2010 jackup utilization rate will average around 72%, essentially flat with the fourth quarter of 2009. Estimate Revisions Trend Based on the company’s performance and 2010 guidance, several analysts following the stock have revised their estimates. Over the past 30 …
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ENSCO: A Mixed Bag of Revisions – Analyst Blog
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