Oil States International, Inc
by Bill WiltonAugust 11, 2011 | Comments : 0 Recommended this article: (0)
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Oil States International, Inc. is a diversified oilfield services company with some exposure to mining. They provide remote site accommodations in the Canadian oil sands and the Australian mining regions. Additionally, they make equipment for deepwater production and pipelines.
Top Line Spikes 38%
On Aug 1 Oil States reported second quarter results that included revenues of just over $820 million, up 28% from $595 a year ago. EBITDA almost doubled to $161 million.
Earnings worked out to $1.34 per share, which was 16 cents higher than the Zacks Consensus Estimate. Oil States has beaten expectations in each quarter since late 2007.
The Zacks Consensus Estimates was up 6 cents into the number, then rose another 16 cents to account for the beat and is now at $5.33. Last year the company made $3.33, so the expected growth rate is 60% for this year.
Next year's average projection is up 35 cents in the past few weeks and is now at $6.59. That level represents a 24% growth rate.
It is no surprise that shares were beaten up the past week or so. But, given the earnings back drop, all that does is make estimates even more enticing. The forward P/E is under 12 times. OIS has a price to sales of 1.1, which is at the low end of its peer group.
Well, a great trend as far as earnings are concerned. The price action will make you cringe at first, but the long-term earnings trend could be enough reason to take the plunge. Just look at the colored lines, each an annual consensus estimate. The gap higher each year, but the real strength is in the sharp upward revisions as the year progresses.
Bill Wilton is the Aggressive Growth Stock Strategist for Zacks.com. He is also the Editor in charge of the Zacks Small Cap Trader service
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