Tidewater Q2 2024 Earnings: Headwinds Are Temporary, But Outlook Remains Robust
Management anticipated longer drydock days in Q3 and several project commencements have been pushed to the right, leading to revised guidance. We believe these developments are temporary. The bull thesis remains in play given supportive market fundamentals. Markets underappreciate potential increases in day rates and utilization rates. We revised our fair value estimate on TDW from $125/share to $121/share (-3%), as smaller vessels with lower yields come into play.
Is the Options Market Predicting a Spike in Tidewater (TDW) Stock?
Investors need to pay close attention to Tidewater (TDW) stock based on the movements in the options market lately.
Tidewater Inc. (TDW) Q2 2024 Earnings Call Transcript
Tidewater Inc. (NYSE:TDW ) Q2 2024 Results Conference Call August 7, 2024 9:00 AM ET Company Participants West Gotcher - VP, Finance & IR Quintin Kneen - President & CEO Piers Middleton - Chief Commercial Officer Samuel Rubio - CFO Conference Call Participants Magnus Anderson - Fearnley Securities Don Crist - Johnson Rice Josh Jayne - Daniel Energy Partners David Smith - Pickering Energy Partners Fredrik Stene - Clarksons Securities Greg Lewis - BTIG Jim Rollyson - Raymond James Operator Thank you for standing by. My name is Mandeep, and I'll be your operator today.
Tidewater (TDW) Tops Q2 Earnings and Revenue Estimates
Tidewater (TDW) came out with quarterly earnings of $0.94 per share, beating the Zacks Consensus Estimate of $0.72 per share. This compares to earnings of $0.46 per share a year ago.
Tidewater: Capitalizing on Booming Oil Rigs and the OSV Market
The market for offshore oil rigs rigs and offshore supply vessels has experienced a significant increase over the past three years, mainly driven by higher oil prices. The favorable market conditions have led to a higher demand for OSVs, leading to increased usage rates as well as daily rates across the industry.
Tidewater: Robust Demand, Supply Constraints, And Conservative Consensus Estimates
Demand for OSVs will likely remain robust thanks to healthy oil prices, peaking US shale production, and lower offshore breakeven levels. Limited yard capacity, high newbuilding and secondhand prices, as well as aging global fleet will result in high day rates and utilization rates. The market is too conservative in anticipating TDW's future growth. We expect TDW to generate $1.85 billion in revenue (13% above consensus) and $1 billion in adjusted EBITDA by 2025.
Amalgamated Bank Decreases Position in Tidewater Inc. (NYSE:TDW)
Amalgamated Bank reduced its stake in Tidewater Inc. (NYSE:TDW – Free Report) by 8.5% during the 4th quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 6,658 shares of the oil and gas company’s stock after selling 617 shares during the period. Amalgamated Bank’s holdings in Tidewater were worth $480,000 as of its most recent SEC filing. Other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. Parkside Financial Bank & Trust acquired a new position in shares of Tidewater in the 4th quarter valued at $33,000. Xponance Inc. purchased a new position in shares of Tidewater during the fourth quarter worth about $204,000. Evergreen Capital Management LLC acquired a new stake in shares of Tidewater during the third quarter worth about $219,000. O Brien Greene & Co. Inc purchased a new stake in shares of Tidewater in the 3rd quarter valued at about $227,000. Finally, Precision Wealth Strategies LLC boosted its position in shares of Tidewater by 8.5% in the 4th quarter. Precision Wealth Strategies LLC now owns 3,376 shares of the oil and gas company’s stock valued at $243,000 after purchasing an additional 264 shares during the period. Institutional investors and hedge funds own 95.13% of the company’s stock. Tidewater Stock Performance Shares of TDW opened at $105.50 on Monday. The stock has a market capitalization of $5.57 billion, a P/E ratio of 42.03 and a beta of 1.21. The company has a debt-to-equity ratio of 0.59, a quick ratio of 1.74 and a current ratio of 1.81. Tidewater Inc. has a 1 year low of $42.62 and a 1 year high of $111.42. The company’s fifty day moving average is $95.33 and its two-hundred day moving average is $76.88. Tidewater (NYSE:TDW – Get Free Report) last issued its quarterly earnings results on Thursday, May 2nd. The oil and gas company reported $0.89 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.49 by $0.40. The business had revenue of $321.20 million for the quarter, compared to analyst estimates of $312.05 million. Tidewater had a net margin of 11.73% and a return on equity of 16.24%. The business’s revenue was up 66.3% compared to the same quarter last year. During the same period in the previous year, the business posted $0.23 earnings per share. On average, sell-side analysts predict that Tidewater Inc. will post 4.68 earnings per share for the current year. Tidewater declared that its Board of Directors has initiated a stock repurchase program on Thursday, February 29th that permits the company to buyback $48.60 million in shares. This buyback authorization permits the oil and gas company to purchase up to 1.1% of its shares through open market purchases. Shares buyback programs are typically an indication that the company’s board believes its stock is undervalued. Wall Street Analyst Weigh In Several research analysts have commented on the company. Johnson Rice initiated coverage on Tidewater in a research report on Friday, February 9th. They set a “buy” rating and a $88.00 price target on the stock. StockNews.com upgraded shares of Tidewater from a “sell” rating to a “hold” rating in a research report on Monday, March 4th. BTIG Research raised their price objective on shares of Tidewater from $110.00 to $130.00 and gave the stock a “buy” rating in a research report on Friday, May 10th. Evercore ISI upped their target price on shares of Tidewater from $87.00 to $89.00 and gave the company an “outperform” rating in a report on Monday, March 4th. Finally, Pickering Energy Partners assumed coverage on shares of Tidewater in a research note on Tuesday, January 30th. They set an “outperform” rating for the company. One research analyst has rated the stock with a hold rating, four have given a buy rating and one has given a strong buy rating to the company. According to data from MarketBeat, the stock currently has an average rating of “Buy” and a consensus price target of $98.00. Check Out Our Latest Stock Report on Tidewater Insiders Place Their Bets In related news, CEO Quintin Kneen sold 150,000 shares of Tidewater stock in a transaction that occurred on Tuesday, May 7th. The stock was sold at an average price of $109.01, for a total value of $16,351,500.00. Following the sale, the chief executive officer now directly owns 501,718 shares in the company, valued at $54,692,279.18. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. In related news, CEO Quintin Kneen sold 150,000 shares of the firm’s stock in a transaction dated Tuesday, May 7th. The shares were sold at an average price of $109.01, for a total value of $16,351,500.00. Following the completion of the sale, the chief executive officer now owns 501,718 shares in the company, valued at $54,692,279.18. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, COO David E. Darling sold 17,821 shares of the company’s stock in a transaction dated Tuesday, March 5th. The stock was sold at an average price of $82.08, for a total transaction of $1,462,747.68. Following the transaction, the chief operating officer now owns 85,959 shares in the company, valued at $7,055,514.72. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 494,972 shares of company stock worth $52,230,772. Company insiders own 9.59% of the company’s stock. Tidewater Profile (Free Report) Tidewater Inc, together with its subsidiaries, provides offshore support vessels and marine support services to the offshore energy industry through the operation of a fleet of marine service vessels worldwide. It provides services in support of offshore oil and gas exploration, field development, and production, as well as windfarm development and maintenance, including towing of and anchor handling for mobile offshore drilling units; transporting supplies and personnel necessary to sustain drilling, workover, and production activities; offshore construction, and seismic and subsea support; geotechnical survey support for windfarm construction; and various specialized services, such as pipe and cable laying.
