Why Is Oceaneering International (OII) Down 4.1% Since Last Earnings Report?

A month has gone by since the last earnings report for Oceaneering International (OII). Shares have lost about 4.1% in that time frame, underperforming the S&P 500.Will the recent negative trend continue leading up to its next earnings release, or is Oceaneering International due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.Oceaneering's Q2 Earnings Surpass EstimatesOceaneering International reported an adjusted profit of 49 cents per share for the second quarter of 2025, beating the Zacks Consensus Estimate of 42 cents.  Moreover, the bottom line surpassed the year-ago quarter’s reported figure of 28 cents. This was due to year-over-year strong operating income from its segments. Total revenues were $698.2 million, which was in line with the Zacks Consensus Estimate. The top line increased approximately 4.4% from the year-ago quarter’s $668.8 million, due to the strong revenue contribution from its segments.Segmental InformationSubsea Robotics: The unit provides remotely operated submersible vehicles for drill support, vessel-based inspection, subsea hardware installation, pipeline surveys and maintenance services.Revenues totaled $218.8 million compared with the year-ago quarter’s $215 million. However, the top line missed our estimate of $242.8 million. The segment also reported an operating income of $64.5 million compared with $61.8 million a year ago. Moreover, the figure beat our estimate of $63.1 million.The EBITDA margin expanded slightly to 35%, reflecting improved ROV revenue per day utilized, which increased to $11,265. ROV fleet utilization was 67%, contributing positively to segment performance.Manufactured Products: The segment focuses on the manufactured products business, theme park entertainment systems and automated guided vehicles.Revenues amounted to $145.1 million, up substantially from the prior-year figure of $139.3 million. Additionally, the top line beat our estimate of $139.4 million.The segment posted an operating profit of $18.8 million in the second quarter, up from the year-ago quarter’s $14.4 million. Moreover, the reported figure beat our estimate of $15.3 million.The backlog totaled $516 million as of June 30, 2025, down 27.6% from the same time in 2024. For the 12 months ending June 30, 2025, the book-to-bill ratio was 0.65.Offshore Projects Group: This segment involves Oceaneering’s former Subsea Projects unit, excluding survey services and global data solutions, the service and rental business, and ROV tooling.Revenues increased about 3.6% to $149.3 million from $144.1 million in the year-ago quarter. However, the figure missed our estimate of $144.6 million.The unit’s operating income totaled $21.7 million compared with the prior-year quarter’s $13.2 million. The figure also beat our estimate of $21.4 million. The operating income margin improved to 15%, reflecting strong operational efficiency in this segment.Integrity Management & Digital Solutions: This segment covers Oceaneering’s Asset Integrity unit, along with its global data solutions business.Revenues of $75.4 million increased from the year-ago quarter’s $73.5 million. The figure also beat our estimate of $73.8 million.The segment reported an operating income of $4.6 million, up from the prior-year quarter’s $3.5 million. The figure also beat our projection of $4.4 million.Aerospace and Defense Technologies: The segment is engaged in Oceaneering’s government business, which focuses on defense subsea technologies, marine services and space systems.Revenues totaled $109.6 million, up from $97 million recorded in the second quarter of 2024.  Additionally, the figure beat our estimate of $98 million.The operating income increased to $16.3 million from $7.2 million in the year-ago quarter and beat our estimate of $10 million. Operating income margin improved to 15%, demonstrating robust profitability.Capital Expenditure & Balance SheetThe capital expenditure in the second quarter, including acquisitions, totaled $32.8 million. As of June 30, 2025, OII had cash and cash equivalents worth $434 million and $497.5 million, respectively, along with a long-term debt of about $484.6 million. The debt-to-total capital was 36.4%.How Have Estimates Been Moving Since Then?Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.VGM ScoresCurrently, Oceaneering International has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. However, the stock has a grade of A on the value side, putting it in the top 20% for this investment strategy.Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.Outlook Oceaneering International has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.One Big Gain, Every Trading DayTo help you take full advantage of this market, you’re invited to access every stock recommendation in all our private portfolios - for just $1.Zacks private portfolio services that closed 256 double and triple-digit winners in 2024 alone. That’s about one big gain every day the market was open. Of course, not all our picks are winners, but members have seen recent gains as high as +627% +1,340%, and +1,708%.Imagine how much you could profit with a steady stream of real-time picks from all our services that cover a number of strategies to suit a variety of investing and trading styles.See Stocks Now >>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 Oceaneering International, Inc. (OII): 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