NEW YORK (TheStreet) -- Shares of McDermott (MDR - Get Report) are jumping 10.05% to $4.49 on heavy trading volume on Friday afternoon following the Houston-based company's 2016 first quarter results.

After yesterday's market close, the offshore drilling platform company posted adjusted earnings of 13 cents per diluted share, trumping analysts' expectations of one cent per share.

Revenue for the quarter was $729 million, above Wall Street's estimates of $670 million.

"Overall, we have had a very positive start to the year, with our results reflecting strong project execution across the entire portfolio and operational profitability on an adjusted basis in all three areas," CEO David Dickson said in a statement.

Following the results, TheStreet's David Peltier and TheStreet research team maintained its "Two" rating on the stock.

"The upside in the period was generated as McDermott more than doubled its operating margin from the previous year, to 10.2%. In addition, the company announced three new projects in the Arabian Gulf yesterday, which should be worth $500 to $750 million," Peltier wrote in a Stocks Under $10 article earlier today.

The company's management continues to execute despite a lower energy price outlook, Peltier added.

About 3.79 million of the company's shares were traded so far today vs. its average volume of 2.71 million shares per day.

(McDermott is held in David Peltier's Stocks Under $10 portfolio. See all of his holdings with a free trial.)

Separately, TheStreet Ratings Team has a "Sell" rating with a score of D on the stock.

The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, weak operating cash flow, generally disappointing historical performance in the stock itself and poor profit margins.

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

You can view the full analysis from the report here: MDR