HMH Holding Q3 revenue falls on lower volume across product

Overview

• US drilling equipment provider's Q3 revenue fell 21% yr/yr due to lower volumes

• Adjusted EBITDA for Q3 down 3% yr/yr, margin improved to 22.3%

• Company completed acquisition of Deepwater Riser Services for $14.5 mln

Outlook

• Company did not provide specific financial guidance for upcoming quarters or full year in its press release

Result Drivers

• LOWER VOLUMES - Co said Q3 revenue decline was due to lower volume across product, service and spare parts

• MIDDLE EAST DELAYS - Co attributed lower product revenue to delayed equipment orders and ongoing Middle East conflict

• SERVICE ORDERS - Co said yr/yr order growth was driven by increased service orders

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", no "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 HMH Holding Inc is $29.00, about 74.1% above its November 3 closing price of $16.66

• The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 11 three months ago

Reuters Recommended Reads

• Nov 3 - Oil services firms face major cost pressure from Iran crisis, execs say

• Nov 2 - Valaris Ltd Q3 revenue rises 10% on drillship contracts

• Nov 3 - Norway's Odfjell Technology Q3 results boosted by well services unit

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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.)