Miller Tabak Reiterates Neutral on FMC Technologies
Miller Tabak maintains its Neutral rating on FMC Technologies (NYSE: FTI) as the company's quarterly results missed estimates and consensus on higher expenses.
Miller Tabak says, "Results missed our $0.50E and $0.51 consensus, with weaker than expected Subsea Technologies EBIT of $69.9 million (down 19% y/y) on somewhat stronger than modeled revenue of $964 million (+38% y/y). About $19 million ($0.06) of the miss came from cost overruns on the Laggan-Tomore project, a subsea natural gas deepwater development west of the Shetlands. Even after this provision, however, subsea EBIT was light at $88.9 million with project delays West Africa work and higher costs associated with ramping capacity to meet increased demand."
FTI closed at $53.77 a share on Tuesday.
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