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McDermott +3% after reaffirming 2018 outlook, outlining CB&I synergies

Published 04/12/2018, 07:56 AM
© Reuters.  McDermott +3% after reaffirming 2018 outlook, outlining CB&I synergies
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  • McDermott (NYSE:MDR) +3.3% premarket after reaffirming FY 2018 guidance for EPS of $0.42-$0.52 vs. $0.49 analyst consensus estimate and revenues of $3.1B-$3.3B vs. $3.15B consensus.
  • MDR issues mixed guidance for Q1, seeing EPS of $0.10-$0.12 vs. $0.07 analyst consensus estimate and revenues of $600M-$610M vs. $618M consensus.
  • The company says it has completed work on the first two platforms for the Safaniya Phase 5 project offshore Saudi Arabia with Phase 6 proceeding according to plan.
  • MDR also says its pending merger with CB&I (NYSE:CBI) has obtained all necessary regulatory approvals and is on track to close in Q2.
  • The companies expect $250M in annualized cost synergies by Q2 2019 and have identified additional $100M in potential incremental savings to be achieved across G&A, Operations and Supply Chain/Procurement.
  • Now read: Comfort Systems' Share Price Still Not Cool Enough For My Taste


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