Key Energy Services
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Key Energy Services missed estimates on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly, and GAAP earnings per share dropped significantly.
Gross margins expanded, operating margins grew, and net margins shrank.
Key Energy Services notched revenue of $509.2 million. The 12 analysts polled by S&P Capital IQ anticipated sales of $522.3 million on the same basis. GAAP reported sales were 45% higher than the prior-year quarter's $350.2 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.28. The 17 earnings estimates compiled by S&P Capital IQ averaged $0.31 per share on the same basis. GAAP EPS of $0.26 for Q4 were 52% lower than the prior-year quarter's $0.54 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 37.2%, 900 basis points better than the prior-year quarter. Operating margin was 14.6%, 1,630 basis points better than the prior-year quarter. Net margin was 7.7%, 1,420 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $536.2 million. On the bottom line, the average EPS estimate is $0.33.
Next year's average estimate for revenue is $2.34 billion. The average EPS estimate is $1.63.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 285 members rating the stock outperform and 15 members rating it underperform. Among 93 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 92 give Key Energy Services a green thumbs-up, and one gives it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Key Energy Services is outperform, with an average price target of $19.17.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.