Tom Reese/Paul Rubillo, Dividend.com
Transocean Ltd (RIG) reported fourth quarter earnings Tuesday, saying its net income fell 24% from the year-ago period, hampered by special after-tax charges.
The offshore drilling company said its fourth quarter earnings fell to $800 million, or $2.50 per share, down from $1.06 billion, or $4.17 per share, during the year-ago period. Transocean saw after-tax charges of $385 million, or $1.19 per share, in the most recent period, mainly related to goodwill impairments and write-downs on a number of oil rigs.
Fourth quarter revenue climbed 57% to $3.27 billion, up significantly from $2.08 billion in the same quarter of the previous year.
On average, analysts expected fourth quarter EPS of $3.70 per share on revenue of $3.29 billion.
As for the full year 2008, Transocean said its earnings rose to $4.2 billion, or $13.09 per share, compared to $3.13 billion, or $14.14 per share, in 2007. Revenue for the full-year 2008 rose to $12.67 billion, nearly double the amount reported in the previous year.
The Bottom Line
Shares of RIG are way off all-time highs hit last summer of $163. The stock has technical support in the $47-54 area. If that fails to hold, the $40-42 levels would come into play next. We see overhead resistance around the $64-67 price points. If that level can be surpassed, the $81-84 range could come into play next. We do not currently rate this non-dividend paying stock at this time, but we do monitor the stock's news flow, as it is a major player in the oil-services sector.
Transocean Ltd (RIG) does not currently pay a dividend.
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