After the closing bell, the Houston-based engineering company posted adjusted earnings of 9 cents per share, while analysts were looking for a loss of 7 cents per share.
Revenue of $558.5 million fell short of Wall Street's estimates of $630.1 million.
For the full year, the company now expects adjusted earnings of about 28 cents per share on revenue of roughly $2.6 billion. Previously, McDermott had projected adjusted earnings of about 12 cents per share on revenue of approximately $2.7 billion for the year.
Analysts are modeling adjusted earnings of 13 cents per share on revenue of $2.7 billion for 2016.
McDermott sees fiscal 2017 earnings per share between 16 cents and 19 cents on revenue in the range of $2.7 billion and $3.0 billion. Wall Street is looking for earnings of 13 cents per share on $2.88 billion in revenue for the full fiscal year.
(McDermott is held in David Peltier's Stocks Under $10 portfolio. See all of his holdings with a free trial.)
Separately, 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.
TheStreet Ratings rated this stock as a "hold" with a ratings score of C-.
The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and poor profit margins.
You can view the full analysis from the report here: MDR