Oil States Q2 Revenue Rises 8% Sequentially, Misses Estimates; Backlog Hits Decade High
OIS sits 68% above its 52-week low of $4.751.
Summary
Oil States International reported Q2 revenue of $156.7M, up 8% from Q1 but below the $159.64M consensus. Adjusted net income was $8M, or $0.14 per share, with adjusted EBITDA of $19M. The company repurchased $5M in stock and retired $53M in convertible notes, strengthening the balance sheet. Backlog reached a decade high, driven by a significant offshore manufactured products contract, signaling improving demand in offshore and international markets. This follows a weak Q1 where revenues and cash flow declined sharply; the sequential improvement and backlog growth suggest a potential inflection, though the revenue miss tempers enthusiasm. The stock trades at a compressed multiple of 10x forward earnings versus 18x three months ago, with a median analyst target of $12.
At the time of this announcement, OIS was trading at $7.99 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $466.5M. The 52-week trading range was $4.75 to $14.50. This news item was assessed with neutral market sentiment and an importance score of 7 out of 10. Source: Reuters.