Why is MDR slipping
It hasn't escaped my attention that MDR has slid ~$4 in 2 days.
I am chalking it up to pre-earnings excitement that has ebbed a bit.
The key to MDR is backlog, which has been growing. As long as they can continue to win contracts and add to their business growth, then margins should expand.
Recent contracts they have won:
* Qatar project: 80 miles of pipeline (no $ announced)
* West Palm Beach Waste facility $300M
* Australian LNG potential win: $200M
* Vietnam 27 mile pipeline (no $ announced)
* Trinidad (with Fluor) 4,000 ton platform (no $ announced)
* Aramco 4 year management contract (no $ announced)
* Coal boiler $250M
They had a backlog of $7.9B last quarter. I figure this dropped to $6.5B and the new deals added $2B, raising backlog even higher
Additionally, their debt ratings have improved, which will lower their operating costs somewhat.
I am chalking it up to pre-earnings excitement that has ebbed a bit.
The key to MDR is backlog, which has been growing. As long as they can continue to win contracts and add to their business growth, then margins should expand.
Recent contracts they have won:
* Qatar project: 80 miles of pipeline (no $ announced)
* West Palm Beach Waste facility $300M
* Australian LNG potential win: $200M
* Vietnam 27 mile pipeline (no $ announced)
* Trinidad (with Fluor) 4,000 ton platform (no $ announced)
* Aramco 4 year management contract (no $ announced)
* Coal boiler $250M
They had a backlog of $7.9B last quarter. I figure this dropped to $6.5B and the new deals added $2B, raising backlog even higher
Additionally, their debt ratings have improved, which will lower their operating costs somewhat.
posted by Andrew at
10:05 AM
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