TechnipFMC to Report Q3 Earnings: What's in Store for the Stock?

TechnipFMC plc FTI is scheduled to release its third-quarter fiscal 2025 results on Oct. 23, before the market opens. The Zacks Consensus Estimate for earnings is pegged at 65 cents per share on revenues of $2.62 billion.

Let us examine the key drivers that may have impacted FTI's performance in the to-be-reported quarter. Before that, it is worth taking a look at the company’s performance in the last reported quarter.

Highlights of FTI’s Q2 Earnings & Surprise History

In the last reported quarter, the Houston, TX-based oil and gas equipment and services company posted adjusted earnings of 68 cents per share, which beat the Zacks Consensus Estimate of 36 cents, primarily due to strong results in the Subsea segment. Moreover, the company’s revenues of $2.5 billion beat the Zacks Consensus Estimate by 2.2%.

FTI’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 32.34%.

This is depicted in the graph below: 

TechnipFMC plc Price and EPS Surprise

TechnipFMC plc price-eps-surprise | TechnipFMC plc Quote

Trend in FTI’s Estimate Revision

The Zacks Consensus Estimate for third-quarter fiscal 2025 earnings has remained unchanged on the upside but recorded one downward revision in the past seven days. The estimated figure indicates a 1.56% year-over-year increase. The Zacks Consensus Estimate for revenues implies a 11.44% increase from the year-ago period.

Factors to Consider Ahead of FTI’s Q3 Results

FTI’s revenues are likely to have improved in the quarter to be reported. The Zacks Consensus Estimate for third-quarter revenues is up from the year-ago quarter’s $2.35 billion. This can be attributed to the strong revenue contribution from the Subsea segment.

TechnipFMC's Subsea segment helps oil and gas companies find and extract oil and gas under the sea. The company designs, builds and installs the equipment needed for this and provides services to keep it working. The segment’s revenues are expected to increase 11.3% year over year, totaling $2.26 billion.

On a bearish note, the increase in FTI’s costs might have dented its to-be-reported bottom line. Going by our model, FTI’s total costs and expenses are likely to increase 8% year over year to $2 billion in the third quarter. Meanwhile, the cost-of-service revenues are expected to rise 1.3% year over year, reaching $1.21 billion. Additionally, the cost of product revenues and lease revenues are anticipated to rise 21.2% and 8.2%, respectively, year over year during the same time frame. The upward cost trajectory could be attributed to the ongoing inflationary environment and tight labor market.

What Does Our Model Predict for FTI?

The proven Zacks model does not conclusively predict an earnings beat for TechnipFMC this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that is not the case here.

Earnings ESP of FTI: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, for this company is -3.68%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

FTI’s Zacks Rank: FTI currently carries a Zacks Rank #2.

Stocks to Consider

Here are some firms from the energy space that you may want to consider, as these have the right combination of elements to post an earnings beat this season.

Archrock, Inc. AROC has an Earnings ESP of +7.32% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Archrock is set to announce its earnings on Oct. 28, following the close of market trading. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 6.50%. Valued at around $4.26 billion, Archrock’s shares have gained 20.5% in a year.

Antero Midstream AM is slated to release its earnings on Oct. 29 after the closing bell. The company carries an Earnings ESP of +2.46% and a Zacks Rank #3.

In the past four quarters, AM’s earnings beat the Zacks Consensus Estimate twice, reported one break-even earnings and missed once, resulting in an average surprise of 1.13%. Valued at around $8.65 billion, AM’s shares have gained 21.6% in a year.

Valued at around $3.07 billion, Transocean RIG currently has an Earnings ESP of +31.58% and a Zacks Rank #3. The company is scheduled to release its earnings on Oct. 29.

Transocean’searnings beat the Zacks Consensus Estimate thrice in the trailing four quarters while missing once, delivering an average negative surprise of 195.83%.

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This article originally published on Zacks Investment Research (zacks.com).

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