FMC Tech. Profit Misses Estimates, Cuts Outlook; Stock Down - Update

(RTTNews) - Oil and gas equipment and service provider FMC Technologies Inc. (FTI), Tuesday reported a higher third-quarter profit amid better revenue, partly offset by lower margins. Nevertheless, both earnings and revenue for the quarter fell short of Wall Street estimates.

The company slashed its adjusted earnings outlook for 2013, sending its stock sliding 7 percent in after-hours trade on the Nasdaq.

"Although Subsea Technologies has delivered four consecutive quarters of greater than $1 billion of revenue, our margins for the quarter were disappointing," said CEO John Gremp.

The Houston, Texas-based company posted third-quarter net income of $116 million or $0.49 per share, compared with $99 million or $0.41 per share, last year.

Results for the quarter included a charge of $8.5 million or $0.04 per share.

On average, 32 analysts polled by Thomson Reuters expected earnings of $0.59 per share for the quarter. Analysts' estimates typically exclude special items.

Revenue for the third quarter climbed to $1.72 billion, up 22 percent from $1.42 billion a year ago, but missed analysts' expectations of $1.75 billion.

Among segments, Subsea Technologies revenue climbed 20 percent year-over-year, while Surface Technologies revenue jumped 26 percent. Energy Infrastructure revenue grew 15 percent.

The company's backlog stands at $7.4 billion.

For fiscal year 2013, FMC expect adjusted earnings in the range of $2.00 to $2.10 per share, down from a prior range of $2.10 to $2.25 per share. Analysts currently expect earnings of $2.19 per share for the year.

FMC stock closed Tuesday's regular trade at $57.77, down $0.26 or 0.45%, on a volume of 2.5 million shares. In after hours, the stock dropped $4.11 or 7.11%, trading at $53.66.