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Earnings in the Spotlight

Looking for strong results overall when this Three-rated model portfolio name reports after the close.
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McDermott (MDR) will wrap up this earnings season for the model portfolio tonight, when it reports results after the closing bell. This Alert is a preview of the report; we're not taking any action for the model portfolio.

The consensus analyst estimate is for the company to earn 40 cents a share, up from 37 cents per share a year ago, on $1.54 million of revenue. Management has exceeded profit expectations for two straight quarters, but results in the construction business often fluctuate from one quarter to the next. Management did not report any major contracts this quarter, but we're looking for strong results overall. McDermott will also host a conference call on Tuesday at 10 a.m. EST that investors can access at the Web site: www.mcdermott.com. On the call we'll be listening for signs of improving margins at the company's energy division and looking for guidance about future orders.

Ahead of the numbers, McDermott remains our lone Three-rated holding in the model portfolio. While the stock has more than doubled from our purchase, we continue to believe that the stock will outperform the broader market averages over the coming months.

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