Oil States Q2 revenue misses expectations
Overview
Oil States Q2 revenue rises 3% sequentially, misses analyst expectations
Adjusted EBITDA for Q2 at $21 mln, reflecting operational improvements
Co repurchased $7 mln of common stock and $15 mln of convertible notes
Outlook
Company notes ongoing U.S. land restructuring efforts impacting future revenue mix
Oil States sees strong offshore product backlog supporting future growth
Company highlights industry-wide reduction in U.S. land activity
Oil States investing in new manufacturing facility to enhance future capabilities
Result Drivers
OFFSHORE MANUFACTURED PRODUCTS - Segment revenues increased 15% sequentially, driven by strong demand and backlog growth
U.S. LAND CHALLENGES - Completion and Production Services and Downhole Technologies segments faced reduced activity, impacting revenues
RESTRUCTURING IMPACT - Ongoing U.S. land-focused restructuring efforts led to downsizing charges and a decline in U.S. land-driven revenue mix
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Miss | $165 mln | $171.10 mln (4 Analysts) |
Q2 EPS |
| $0.05 |
|
Q2 Net Income |
| $3 mln |
|
Q2 Adjusted EBITDA |
| $21 mln |
|
Q2 Adjusted Free Cash Flow |
| $15 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the oil related services and equipment peer group is "buy"
Wall Street's median 12-month price target for Oil States International Inc is $6.50, about 13.4% above its July 30 closing price of $5.63
The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 11 three months ago
Press Release: ID:nBw6hjb55a
