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Seadrill’s 1Q17 Results: What Can Investors Expect?

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1Q17 results

Seadrill (SDRL) plans to release its 1Q17 results on May 24, 2017. It will have a conference on the same day.

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4Q16 recap

In 4Q16, Seadrill’s revenue was $667 million—nearly 10% lower than revenue of $743 million in 3Q16 and 30% lower than revenue of $959 million in 4Q15.

Seadrill’s EBITDA (earnings before interest, tax, depreciation, and amortization) in 4Q16 fell to $354 million—compared to $441 million in 3Q16 and $513 million in 4Q15.

Seadrill continued its restructuring efforts. The company also stated that if a consensual agreement with debtors isn’t reached, it will prepare a contingency plan, which might include Chapter 11 proceedings.

The company secured a few contract extensions. To learn more about the extensions, read Seadrill’s Backlog and Contract Updates.

Stock performance

On May 18, 2017, the YTD (year-to-date) stock returns for offshore drilling (OIH) stocks, compared to their prices at the beginning of the year, were:

  • Noble (NE) fell 25.5%.
  • Atwood Oceanics (ATW) fell 37.4%.
  • Diamond Offshore Drilling (DO) fell 24.8%.
  • Seadrill fell 82.9%.
  • Transocean (RIG) fell 29.9%.
  • Rowan Companies (RDC) fell 30.1%.
  • Seadrill Partners (SDLP) fell 24.3%.

Series overview

In this series, we’ll look at analysts’ revenue and earnings estimates for Seadrill’s 1Q17 results. We’ll also discuss analysts’ recommendations for the stock.

Changes in analysts’ estimates are key drivers of stocks’ short-term price movements. Investors should keep track of estimates because they provide insight into the market’s expectations for a company.

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