The stock fell initially as much as 8.79% in morning trading, before finishing the day up 3.36% to $8 a share.
McDermott reported an adjusted loss per share of $1.55, badly missing Wall Street's expectation for earnings of 17 cents. Revenue was $2.07 billion, missing analysts' estimates of $2.64 billion.
"Our results for the fourth quarter of 2018 were marked by several significant non-recurring charges, including those related to goodwill and deferred tax assets," said David Dickson, president and chief executive officer. "Additionally, our operating performance was unfavorably impacted by a change in estimate on the Calpine gas turbine project, the previously announced change in estimate on the Cameron LNG project and a number of other discrete operating items as noted below."
The $1.4 billion market cap engineering and construction company, however, provided strong guidance. Full year 2019 adjusted EPS is expected to be in the range of $1.65 to $1.75, against estimates of $1.47. Revenue was guided at $9.5 billion to $10.5 billion vs.estimates of $9.8 billion.
The stock has fallen 66% in the past year.