SeaDrill Limited Goes Red

SeaDrill Limited (NYSE: SDRL  ) reported earnings on Feb. 29. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), SeaDrill Limited beat slightly on revenues and missed expectations on earnings per share.

Compared to the prior-year quarter, revenue shrank and GAAP earnings per share dropped to a loss.

Gross margins increased, operating margins improved, net margins dropped.

Revenue details
SeaDrill Limited reported revenue of $1.06 billion. The 20 analysts polled by S&P Capital IQ expected a top line of $1.04 billion on the same basis. GAAP reported sales were 6.8% lower than the prior-year quarter's $1.12 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at -$0.23. The nine earnings estimates compiled by S&P Capital IQ predicted $0.71 per share. GAAP EPS were -$0.23 for Q4 compared to $0.42 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 61.0%, 370 basis points better than the prior-year quarter. Operating margin was 42.3%, 210 basis points better than the prior-year quarter. Net margin was -10.5%, 3,320 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $1.05 billion. On the bottom line, the average EPS estimate is $0.73.

Next year's average estimate for revenue is $4.48 billion. The average EPS estimate is $3.20.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 670 members out of 674 rating the stock outperform, and six members rating it underperform. Among 145 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 143 give SeaDrill Limited a green thumbs-up, and two give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on SeaDrill Limited is hold, with an average price target of $38.70.

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