Key Energy Services
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Key Energy Services met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank and GAAP earnings per share dropped significantly.
Margins contracted across the board.
Key Energy Services booked revenue of $466.5 million. The 13 analysts polled by S&P Capital IQ foresaw sales of $464.3 million on the same basis. GAAP reported sales were 8.4% lower than the prior-year quarter's $509.2 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 $0.09. The 18 earnings estimates compiled by S&P Capital IQ anticipated $0.08 per share. GAAP EPS of $0.09 for Q4 were 65% lower than the prior-year quarter's $0.26 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 31.9%, 530 basis points worse than the prior-year quarter. Operating margin was 7.2%, 740 basis points worse than the prior-year quarter. Net margin was 2.9%, 480 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $468.5 million. On the bottom line, the average EPS estimate is $0.08.
Next year's average estimate for revenue is $1.99 billion. The average EPS estimate is $0.50.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 286 members out of 301 rating the stock outperform, and 15 members rating it underperform. Among 81 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 79 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 hold, with an average price target of $8.44.
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