Dallas, Texas 01/07/2014 (FINANCIALSTRENDS) – McDermott International (NYSE:MDR), the $2 billion market capped oil and gas equipment and services provider has tried to claw its way back into the good books of the investor community over the past few months. In the past quarter it has clocked a impressive 19.6 percent appreciation in its market value as against a 26 percent overall loss that it had recorded for the trailing 12 months.
This extended weakness in the stock of McDermott International (NYSE:MDR) was caused by the accumulation of close to $152 million loss from operations over the past year from its annual sales of $3.14 billion. The management had come under severe pressure to turn around the continued dip in the demand for its products which was reflected in a 33 percent dip in sales on a quarter on quarter basis. This slowdown in demand had resulted in sever funds flow crunch leading to a 228 percent dip in earnings per share over the past quarter.
An indication of McDermott International (NYSE:MDR) tasting success in its turnaround effort in the recent past is provided by the increasing confidence in the stock by investors. The stock has posted a 0.46 percent increase in value during trading in the past one week of trading and this appreciation increases to a impressive 11.31 percent in the past one month. At these levels of recuperation, the stock is trading at 31 percent above its prior 52 week low price point. The stock had been range bound between $6.68 and $13.48 per share over the past 12 months.
Investors in the stock of McDermott International (NYSE:MDR) would be hoping that that revival in the market fortunes of the firm continues to gain momentum, as has been predicted by trade analysts. Readers should note that at current price points, the stock has already breached the analysts consensus price target of $8.49.