Key Energy Services
The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Key Energy Services met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped slightly and GAAP earnings per share contracted to a loss.
Margins shrank across the board.
Key Energy Services chalked up revenue of $490.9 million. The 10 analysts polled by S&P Capital IQ wanted to see revenue of $495.0 million on the same basis. GAAP reported sales were 2.1% lower than the prior-year quarter's $501.3 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 $0.15. The 16 earnings estimates compiled by S&P Capital IQ forecast $0.15 per share. GAAP EPS were -$0.65 for Q3 compared to $0.30 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 31.6%, 560 basis points worse than the prior-year quarter. Operating margin was 9.9%, 700 basis points worse than the prior-year quarter. Net margin was -7.8%, 1,660 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $492.8 million. On the bottom line, the average EPS estimate is $0.14.
Next year's average estimate for revenue is $1.99 billion. The average EPS estimate is $0.72.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 287 members out of 301 rating the stock outperform, and 14 members rating it underperform. Among 69 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 68 give Key Energy Services a green thumbs-up, and one 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 $10.05.
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