Oil States International Q3 beats estimates on offshore demand
OIS•Oil States International reported Q3 revenue of $170 million, above the $162.63 million consensus estimate, and adjusted net income of $8 million, or $0.15 per share. It approved a new $50 million stock repurchase plan as backlog rose 7% sequentially to $482 million.
1. Revenue and earnings
Oil States International's Q3 revenue rose 8% sequentially to $170 million, beating analyst expectations of $162.63 million. Net income was $3.11 million, or $0.05 per share; adjusted net income, excluding charges, was $8 million, or $0.15 per share. Adjusted EBITDA totaled $20 million.
2. Demand and backlog
The company said revenue growth was driven by strong demand in its Offshore Manufactured Products segment. Downhole Technologies revenue rose 6% sequentially. Backlog increased 7% sequentially to $482 million, its highest level since December 2014, with a book-to-bill ratio of 1.3 times.
3. Repurchase plan
The company approved a new $50 million stock repurchase plan after buying back $4 million of stock in Q3. It did not provide specific financial guidance for the upcoming quarter or full year in the press release.
