Ensco’s Share Price and Returns after 4Q15 Earnings
How Far Offshore Did Ensco Go? Here Are Its 4Q15 Results
Ensco’s share price reaction
Ensco (ESV) released its financial information for 4Q15 on February 24, 2016. Its stock reacted negatively immediately following the earnings release, falling by 0.5% over the previous day’s close to $8.28. YTD (year-to-date), its share price is down by 48%.
National Oilwell Varco (NOV), ESV’s peer in the oilfield equipment and services industry, released its financial information for 4Q15 on February 3. NOV’s share price decreased by 8.7% following the earnings release. ESV makes up 0.01% of the SPDR S&P 500 ETF (SPY).
Ensco’s share price returns vis-à-vis industry
In the past one year, Ensco’s stock has returned -67% (net of dividends) as of February 24. During that period, ESV has underperformed the Market Vectors Oil Services ETF (OIH), which has returned -32%. By comparison, the Energy Select Sector SPDR ETF (XLE)—the broader energy industry ETF—has returned -27.5%. ESV has even underperformed the US offshore rig count, which returned -54% in the past one year.
ESV has also significantly underperformed the SPDR S&P 500 ETF (SPY), which has returned -7% during the same period. ESV has, however, outperformed peer SeaDrill Limited (SDRL), which returned -84% (net of dividends) in the past one year. (Check out Market Realist’s series Will Lower Capex Plans Hurt Ensco? to learn why Ensco has underperformed the industry.)
Ensco lowers dividend
In its 4Q15 earnings press release, Ensco announced that it has slashed its quarterly dividend to $0.01 per Class A ordinary share from the previous quarterly dividend per share of $0.15.
In the next and final part of this series, we’ll discuss Wall Street analyst targets for Ensco.
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