Oilfield services provider Oil States misses Q3 profit estimates as lower commodity prices hurt

Reuters
Oct 31
Oilfield services provider Oil States misses Q3 profit estimates as lower commodity prices hurt

Overview

  • Oil States Q3 revenue of $165 mln missed analyst expectations

  • Adjusted EPS of $0.08 missed analyst estimates

  • Company generated $31 mln in cash flows from operations

Outlook

  • Company did not provide specific guidance for future quarters or full year

Result Drivers

  • OFFSHORE FOCUS - Co emphasized offshore and international operations amid U.S. headwinds from lower commodity prices and tariffs

  • BACKLOG INCREASE - Offshore Manufactured Products segment backlog grew 10% with strong bookings

  • RESTRUCTURING IMPACT - Completion and Production Services faced restructuring costs affecting revenues

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Miss

$165 mln

$167.68 mln (4 Analysts)

Q3 Adjusted EPS

Miss

$0.08

$0.09 (4 Analysts)

Q3 EPS

$0.03

Q3 Net Income

$2 mln

Q3 Adjusted EBITDA

$21 mln

Q3 Adjusted Free Cash Flow

$31 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 $7.75, about 12.5% above its October 30 closing price of $6.78

  • The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 11 three months ago

Press Release: ID:nBw8WBRM9a

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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