FMC Technologies’ share price reaction
FMC Technologies released its financial information for 1Q16 on April 26, 2016. Its stock reacted negatively immediately following the earnings release. On the day, it fell ~1.2% to $28.50 compared to the previous day’s close. Since the beginning of 2016, FTI’s share price has fallen 2.5%.
Schlumberger (SLB), which released its financial information for 1Q16 on April 21, 2016, saw a 2% fall in its share price on the day of its earnings release.
FTI’s share price returns compared to the industry
In the past year, FMC Technologies’ stock has returned -30% net of dividends as of April 26. In the past year, FTI has underperformed the VanEck Vectors Oil Services ETF (OIH), which has returned -22%. The Energy Select Sector SPDR ETF (XLE), the broader energy industry ETF, has produced a -15% return.
FMC Technologies has also underperformed the SPDR S&P 500 ETF (SPY), which returned 1.2% during the same period.
FTI has, however, outperformed the US rig count, which returned -54% in the past year. FTI’s peer Weatherford International (WFT) has also underperformed FTI, producing a -43% return since April 26, 2015.
Will order backlog improve FTI’s performance in 2016?
Although falling upstream capital expenditure and lower prices for FMC Technologies’ products remain its concerns going into 2016, the company’s management is upbeat about subsea service orders.
In FTI’s 1Q16 earnings press release, John T. Gremp, FTI’s chairman and CEO, said, “While operators’ reduced capital spending continues to delay large deepwater projects, we believe that our subsea service orders will remain fairly resilient in 2016.”
You can read Market Realist’s Dark Days for Oilfield Services: Spotlight on 4 Key OFS Mid-Caps to learn about FMC Technologies in depth.
Next, we’ll discuss Wall Street analysts’ targets for FMC Technologies.