Transocean to Report Q2 Earnings: What's in the Offing for the Stock?

Transocean Ltd. RIG is set to release second-quarter 2025 earnings on Aug. 4, after the closing bell.  The Zacks Consensus Estimate for the to-be-reported quarter is pegged at a loss of 1 cent per share on revenues of $968.1 million.Let us delve into the factors that might have influenced RIG’s performance in the to-be-reported quarter. Before that, it is worth taking a look at the company’s performance in the last reported quarter.Highlights of Q1 Earnings & Surprise HistoryIn the last reported quarter, the Switzerland-based oil and gas drilling company’s adjusted net loss of 10 cents per share was narrower than the Zacks Consensus Estimate of a loss of 12 cents. Additionally, adjusted revenues of $906 million beat the Zacks Consensus Estimate of $886 million.RIG’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters and missed in the remaining two, delivering an average negative surprise of 242.7%.This is depicted in the graph below: Transocean Ltd. Price and EPS Surprise Transocean Ltd. price-eps-surprise | Transocean Ltd. QuoteTrend in RIG’s Estimate RevisionThe Zacks Consensus Estimate for RIG’s second-quarter earnings has not witnessed any movement over the past 30 days. The estimated figure indicates 93.33% year-over-year growth. The Zacks Consensus Estimate for revenues indicates growth of 12.44% from the year-ago period’s $861 million.Factors to Consider Ahead of RIG’s Q2 ReleaseTransocean makes money by providing drilling services for oil and gas companies. It rents out specialized offshore drilling rigs, equipment and workers to help these companies drill wells in the ocean. The company operates a fleet of advanced drilling units, including ones designed for deepwater and rough conditions. Transocean earns revenues by charging customers (like big energy companies and governments) for the use of its rigs and services.RIG’s revenues are likely to have improved in the quarter to be reported, attributed to the strong performance of its segments. For instance, the Ultra-Deepwater Floaters segment is projected to experience a substantial 16.1% year-over-year expansion, reaching a total of $703.5 million. Furthermore, the Harsh Environment Floaters segment is expected to have contributed significantly, with an anticipated 5.1% year-over-year surge, amounting to $267.9 million.On a bearish note, the increase in RIG’s costs might have dented its to-be-reported quarter’s bottom line. Going by our model, RIG’s total costs and expenses are likely to be up 11% year over year to $862.7 million in the second quarter.Breaking this down further, Operating and Maintenance (O&M) costs are expected to see a substantial rise of 15% year over year, reaching $614.3 million. Simultaneously, depreciation and amortization expenses are also anticipated to increase 10.5% year over year, amounting to $203.3 million.What Does Our Model Say About RIG?Our proven model does not predict an earnings beat for Transocean this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case here.RIG’s Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, for this company is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.RIG’s Zacks Rank:  RIG currently carries a Zacks Rank #3.Stocks to ConsiderHere are some firms from the energy space that you may want to consider, as these have the right combination of elements to post an earnings beat this reporting cycle.MPLX LPMPLX has an Earnings ESP of +1.36% and a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.MPLX is scheduled to release earnings on Aug. 5. Notably, the Zacks Consensus Estimate for MPLX’s 2025 earnings per share indicates 6.4% year-over-year growth. Valued at around $52 billion, MPLX’s shares have gained 20.1% in a year.Permian Resources Corporation PR has an Earnings ESP of +3.51% and a Zacks Rank #3. PR is slated to release earnings on Aug. 6.The Zacks Consensus Estimate for PR’s 2025 revenues indicates 5.5% year-over-year growth. Valued at around $11.5 billion, PR’s shares have lost 4.9% in a year.Canadian Natural Resources Limited CNQ has an Earnings ESP of +14.50% and a Zacks Rank #3. CNQ is slated to release earnings on Aug. 7.The Zacks Consensus Estimate for Canadian Naturals’ 2025 revenues indicates 4.6% year-over-year growth. Valued at around $66.8 billion, CNQ’s shares have lost 5.7% in a year.#1 Semiconductor Stock to Buy (Not NVDA)The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow.One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Transocean Ltd. (RIG): Free Stock Analysis Report Canadian Natural Resources Limited (CNQ): Free Stock Analysis Report MPLX LP (MPLX): Free Stock Analysis Report Permian Resources Corporation (PR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks