Key Energy Services
The 10-second takeaway
For the quarter ended March 31 (Q1), Key Energy Services missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share increased.
Margins grew across the board.
Key Energy Services notched revenue of $486.8 million. The 10 analysts polled by S&P Capital IQ predicted sales of $508.7 million on the same basis. GAAP reported sales were 24% higher than the prior-year quarter's $391.0 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.23. The 15 earnings estimates compiled by S&P Capital IQ predicted $0.26 per share. GAAP EPS were $0.02 for Q1 compared to -$0.13 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 36.0%, 550 basis points better than the prior-year quarter. Operating margin was 13.0%, 620 basis points better than the prior-year quarter. Net margin was 0.7%, 530 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $557.7 million. On the bottom line, the average EPS estimate is $0.39.
Next year's average estimate for revenue is $2.33 billion. The average EPS estimate is $1.64.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 284 members rating the stock outperform and 15 members rating it underperform. Among 79 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 77 give Key Energy Services a green thumbs-up, and two give 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 $20.50.
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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.