Quick Wins by the Algorithm: GulfMark Offshore, Inc.

Quick Wins by the Algorithm

GulfMark Offshore, Inc. (GLF)

GulfMark Offshore, Inc. (GLF) provides offshore marine support and transportation services primarily to the companies involved in the offshore exploration and production of oil and natural gas. The company’’s vessels offer various services supporting the construction, positioning, and ongoing operation of offshore oil and natural gas drilling rigs and platforms, and related infrastructure.

Quick Wins

The Q4 earnings report for GulfMark Offshore was released on February 29th, and analysts have taken a look at the numbers. The company saw revenues of $50.59 million with net earnings of -$16.64 million. For the year, GLF experienced relative underperformance when compared with its peers, but in the last month the company turned this around. GLF’s share price performance of 12.53% in the 30-day period leading up to March 2nd outperformed in its peer group.

GullMark Offshore, Inc. had a rough year in 2015 with the earnings report revealing year-on-year revenue growth of -56.44% and year-on-year net earnings growth of -328.7%. Gross margins and operating margins both narrowed with gross margins closing from 26.64% down to 3.40% and the company’s operating margins narrowing from 29.04% down to 13.64%. This decline in operating margins likely contributed to the apparent decline in earnings for 2015.

In the last month of 2015, GulfMark Offshore seemed to have adjusted and been able to make a slight comback. Comparing the quarterly revenue and earnings growth, we see that Q4 revenues dropped only 16.61% and Q4 earnings grew 91.02% in comparison with the previous quarter. When compared with the yearly data, we can see that the last quarter showed a big boost in both revenue and earnings.

GLF had a change in operating cash flow of -62.77%, about average among its peer group, compared to the same period last year which is about the same as its change in earnings for this period. This suggests that the company did not use or rely on accruals or reserves to manage earnings this period, and that the earnings number is sustainable for the future of the compay.

The predictive algorithm is currently bullish on GLF for the short, mid and long-term time horizons. On the 1-year time period, the algorithm is showing a strong bullish signal of 73.30 with a predictability of 0.78.

Quick Wins