"New" McDermott Int'l Posts Strong Start 2Q

McDermott International MDR reported a combined operating income of $189.5M which was 25.7% over the Jefferies & Company estimate, showing a 106.4% sequential jump and up 28.3% over this time 2009. 2Q EPS were reported as $0.60 compared to the $0.48 estimated by Jefferies, with GAAP EPS at $0.32 including $0.28/share of BWC spin-off costs. Jefferies maintains "buy" and has changed standalone 2010-11 EPS estimates to $1.19 and $1.30, respectively, and has increased the price target from $16 to $17. McDermott International closed yesterday at $13.48.