Offshore Drillers profits going down daily, eps estimates being revised downward
on a daily basis, today its OII
Wunderlich is lowering their tgt to $45 from $65 after OII tentatively issued lower 2010 EPS guidance due to the recent six-month deepwater drilling moratorium, which could change (along with their ests) based on the length of the suspension. Additionally, there continues to be uncertainty of shallow water activity in the Gulf of Mexico. Despite the fact the co works throughout the world, the slowdown causes reduced earnings and EBITDA in 2010 and likely 2011.
On the BP side, its sliding on worries its div. will be cut.