TechnipFMC to Report Q1 Earnings: What's in Store for the Stock?

TechnipFMC plc FTI is set to release fiscal first-quarter results on April 24. The Zacks Consensus Estimate for earnings is pegged at 36 cents per share on revenues of $2.27 billion.

Let us delve into the factors that might have influenced 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 Q4 Earnings & Surprise History

In the last reported quarter, the Houston, TX-based oil and gas equipment and services company's earnings beat the consensus mark, driven by improved performance of the Subsea segment. FTI reported adjusted earnings per share of 54 cents, which surpassed the Zacks Consensus Estimate of 35 cents. Moreover, revenues of $2.4 billion marginally beat the Zacks Consensus Estimate by 3.1%.

FTI’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 48.65%.  (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

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 first-quarter fiscal 2025 earnings has not witnessed any movement in the past seven days. The estimated figure indicates an 11.05% year-over-year increase. The Zacks Consensus Estimate for revenues implies a 63.64% increase from the year-ago period's level.

Factors to Consider Ahead of FTI’s Q1 Results

FTI’s revenues are likely to have improved in the quarter to be reported. The Zacks Consensus Estimate predicts fiscal first-quarter revenues to increase from the year-ago quarter’s $2,250.3 million. 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 13.1% year over year, totaling $1,961.9 million.

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 7.3% year over year to $2,020.3 million in the fiscal first quarter.

Meanwhile, the cost-of-service revenues are expected to rise 16.6% year over year, reaching $1,188.6 million. 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 -0.92%. 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 #3.

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 reporting cycle.

Antero Resources Corporation AR has an Earnings ESP of +6.35% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Antero Resources is scheduled to release earnings on April 30. Notably, the Zacks Consensus Estimate for Antero Resources’ 2025 earnings per share indicates 1,114.29% year-over-year growth. Valued at around 10.71 billion, Antero Resources’ shares have gained 13.3% in a year.

TC Energy Corporation TRP has an Earnings ESP of +5.11% and a Zacks Rank #2 at present. The company is scheduled to release earnings on May 1.

TC Energy is an energy infrastructure company in North America, operating through four segments: Canadian, the U.S. and Mexico Natural Gas Pipelines, as well as Power and Energy Solutions. Valued at around $51.36 billion, TC Energy’s shares have gained 37.7% in a year.

Comstock Resources, Inc. CRK has an Earnings ESP of +22.33% and a Zacks Rank #3 at present. The company is scheduled to release earnings on April 30.

The Zacks Consensus Estimate for Comstock Resources’ 2025 earnings per share indicates 600% year-over-year growth. Valued at around $5.79 billion, Comstock Resources’ shares have gained 103.2% in a year.

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

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