Transocean Ltd. (NYSE:RIG), a leading offshore drilling services provider, recently saw a downward revision in its earnings estimates by Zacks Research. In a report released on March 10th, analyst N. Choudhury lowered the company’s Q2 2025 earnings forecast to $0.01 per share, down from the previous estimate of $0.02. The consensus estimate for the company’s full-year 2025 earnings now stands at $0.14 per share. Further revisions by Zacks Research project Q3 2025 earnings at $0.03 per share, Q1 2026 at $0.04 per share, and FY2027 at $0.18 per share.
Earnings Performance and Market Reaction
Transocean last reported its quarterly earnings on February 17th, revealing an EPS of ($0.09), which fell short of the consensus estimate of $0.02 by a substantial margin. The company’s revenue for the quarter came in at $952 million, slightly below analysts’ expectations of $962.28 million. Transocean reported a negative return on equity of 0.52% and a negative net margin of 14.53%, indicating continued financial challenges.
Analyst Sentiment and Price Target Adjustments
The earnings miss and ongoing financial struggles have prompted several analyst firms to revise their outlook on Transocean:
- TD Cowen reduced its price objective from $6.50 to $5.50, maintaining a “hold” rating on the stock.
- Evercore ISI downgraded Transocean from an “outperform” rating to “in-line,” lowering its price target from $6.00 to $5.00.
- Barclays decreased its target from $4.50 to $4.00 while maintaining an “overweight” rating.
- SEB Equity Research set a $2.80 target price for the stock.
- Benchmark reiterated a “hold” rating without assigning a price target.
Market Sentiment and Investor Outlook
The latest revisions indicate a cautious stance from analysts regarding Transocean’s ability to navigate the volatile offshore drilling market. With two analysts rating the stock as a “sell,” six assigning a “hold,” and three recommending a “buy,” Transocean maintains a “Hold” consensus rating with an average price target of $5.42, according to MarketBeat.
As the company continues to grapple with financial headwinds, investor attention will likely focus on its upcoming earnings reports and any strategic moves to improve profitability. Market participants will be watching closely for signs of operational efficiency improvements, cost-cutting measures, and potential contract wins that could influence the stock’s trajectory in the coming months.
