GulfMark Offshore, Inc. (NYSE:GLF) announced the results of their fourth quarter and year-end earnings for 2014. For the fourth quarter revenue came in at $116 million. Net income was $7.3 million and that translated to a profit of 29 cents per-share. For the year revenue came in at $495 million and net income $62 million or an EPS of $2.39. Revenue for both the quarter and the year beat estimates and the company set a record for the highest yearly revenue total in its history. The company says it is facing a slowdown in orders for the coming quarter but is utilizing cost cutting measures and creating efficiency to neutralize that. The company said it expects demand to be slow the rest of the year.
The first thing the company says they will address is the cost structure of the business model. To compensate for the expected revenue decline they want to reduce direct operating costs. All ship builders are facing the slowdown in demand. GulfMark Offshore, Inc. (NYSE:GLF) has sold three vessels already in the quarter but is still being cautious. They areextending payment plans for customersbut still delivering the builds on schedule. They also are working with creditors to renegotiate terms of the current debt on the balance sheet to be friendlier.
Despite the slowdown in demand, the company said expects to remain profitable. They recently repurchased $48 million of their own shares in an effort to secure shareholder value. That was the last purchase and they will suspend that program until the outlook on sales improves. They also suspended the dividend program based on current market forecasts to keep the company liquid. GulfMark Offshore, Inc. (NYSE:GLF) said it is more interested in long-term growth than seasonal waves.
The stock sold off on the earnings news and need to do some repairing. It is trading below its Moving Averages and momentum is negative. The first resistance is at $19.58 and that is a thick band.
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