Key Energy Services
The 10-second takeaway
For the quarter ended June 30 (Q2), Key Energy Services missed estimates on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted significantly. Non-GAAP earnings per share dropped significantly. GAAP earnings per share dropped to a loss.
Margins shrank across the board.
Key Energy Services reported revenue of $411.4 million. The 11 analysts polled by S&P Capital IQ expected revenue of $421.2 million on the same basis. GAAP reported sales were 20% lower than the prior-year quarter's $516.0 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 $0.01. The 17 earnings estimates compiled by S&P Capital IQ predicted $0.01 per share. Non-GAAP EPS of $0.01 for Q2 were 95% lower than the prior-year quarter's $0.21 per share. (The prior-year quarter included -$0.02 per share in earnings from discontinued operations.) GAAP EPS were -$0.03 for Q2 against $0.19 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 30.2%, 310 basis points worse than the prior-year quarter. Operating margin was 2.0%, 990 basis points worse than the prior-year quarter. Net margin was -1.0%, 660 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $455.7 million. On the bottom line, the average EPS estimate is $0.07.
Next year's average estimate for revenue is $1.76 billion. The average EPS estimate is $0.17.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 289 members out of 304 rating the stock outperform, and 15 members rating it underperform. Among 67 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 64 give Key Energy Services a green thumbs-up, and three 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 $7.85.
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