Miller Tabak Reiterates Neutral on FMC Technologies

Miller Tabak maintains its Neutral rating on FMC Technologies 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.