Tenaris Q3 net sales rise 4%, beat estimates
Overview
Steel pipe maker's Q3 net sales rose 4% yr/yr, beating analyst expectations
Q3 net income increased 15% from a year earlier
Sales growth driven by North America demand and Middle East shipments
Outlook
Company expects Q4 sales and EBITDA to rise on higher North America OCTG demand and prices
Tenaris says Q4 should establish new baseline for sales and EBITDA for 2027
Company sees global drilling activity and offshore investments supporting future demand
Result Drivers
REGIONAL DEMAND - Higher demand in North America and increased shipments to the Middle East supported sales recovery
PRODUCT MIX & EFFICIENCY - Improved product mix, efficient operations, and postponed maintenance helped offset higher input costs
OCTG & LINE PIPE SALES - Higher sales of OCTG and line pipe to U.S. distributors contributed to North America growth
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Net Sales | Beat | $3.10 bln | $3 bln (6 Analysts) |
Q3 Net Income | $521 mln | ||
Q3 EBITDA | $756 mln | ||
Q3 Operating Income | $598 mln |
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 6 "strong buy" or "buy", 8 "hold" and 2 "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 Tenaris SA is €28.60, about 14.9% above its November 4 closing price of €24.89
The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 14 three months ago
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Nov 2 - Valaris Ltd Q3 revenue rises 10% on drillship contracts
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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.)