Oceaneering (OII) shares tumbled 6.52% in pre-market trading on Thursday, despite reporting better-than-expected third-quarter results. The significant drop appears to be driven by the company's disappointing fourth-quarter revenue outlook.
The offshore energy services provider announced Q3 adjusted earnings of $0.55 per diluted share, surpassing analysts' expectations of $0.43 and showing improvement from $0.36 a year earlier. Revenue for the quarter ended September 30 reached $742.9 million, exceeding the FactSet consensus estimate of $709 million and up from $679.8 million in the same period last year.
However, investors seem to be focusing on Oceaneering's forward-looking statements. The company expects fourth-quarter revenue to decline year over year, which has likely triggered the sell-off in pre-market trading. This outlook suggests potential challenges in the near term, overshadowing the strong Q3 performance and causing concern among investors about the company's growth trajectory.
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