Oil States International Q3 beats estimates on offshore demand

Overview

• U.S. energy equipment maker's Q3 revenue rose 8% sequentially, beating analyst expectations

• Adjusted net income totaled $8 mln, or $0.15 per share, excluding charges

• Company approved new $50 mln stock repurchase plan, after $4 mln buyback in Q3

Outlook

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

Result Drivers

• OFFSHORE PRODUCTS DEMAND - Co said Q3 revenue growth was driven by strong demand in Offshore Manufactured Products segment

• BACKLOG EXPANSION - Co reported 7% sequential backlog growth to $482 mln, highest since December 2014, with book-to-bill ratio of 1.3x

• DOWNHOLE TECHNOLOGIES GROWTH - Downhole Technologies segment revenue rose 6% sequentially, contributing to overall revenue increase

Company press release:

Key Details

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 $12.00, about 32.2% above its October 29 closing price of $9.08

• The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 11 three months ago

Reuters Recommended Reads

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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.)