Oil States International (NYSE:OIS) Issues Quarterly Earnings Results, Beats Expectations By $0.03 EPS

Oil States International (NYSE:OIS) issued its quarterly earnings results on Friday. The oil and gas company reported $0.15 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.12 by $0.03, FiscalAI reports. Oil States International had a negative net margin of 16.78% and a positive return on equity of 4.28%. The company had revenue of $169.76 million during the quarter, compared to the consensus estimate of $162.62 million. During the same quarter in the previous year, the firm earned $0.08 earnings per share. The firm’s quarterly revenue was up 2.8% on a year-over-year basis.

Here are the key takeaways from Oil States International’s conference call:

• Third-quarter results exceeded guidance, with revenue rising 8% sequentially to $170 million and adjusted EBITDA increasing 6% to $20 million; adjusted EPS was $0.15.
• Offshore Manufactured Products backlog reached a nearly 12-year high of $482 million, up 21% year over year, with third-quarter book-to-bill of 1.3x and year-to-date book-to-bill of 1.2x. Management cited sustained offshore, international, and military demand, particularly in deepwater markets.
• Management expects continued growth from differentiated technologies, including managed pressure drilling, subsea intervention, and deep-sea mineral gathering systems; MPD revenue is modeled at approximately $35 million-$40 million annually at attractive margins.
• Fourth-quarter guidance calls for revenue of $172 million-$184 million and adjusted EBITDA of $20 million-$23 million, while the board authorized a new $50 million, two-year share repurchase program.
• Cash generation has been delayed by a $38 million year-to-date inventory investment and project timing, with fourth-quarter free cash flow now expected at $15 million-$25 million and asset-sale proceeds likely pushed into 2027. Elevated tungsten, explosive powder, and copper costs will remain a Downhole Technologies headwind into the fourth quarter, though management expects moderation in early 2027.

Oil States International Stock Performance

NYSE OIS traded up $0.50 during trading hours on Friday, hitting $9.58. The company had a trading volume of 1,463,826 shares, compared to its average volume of 881,734. The company has a debt-to-equity ratio of 0.03, a quick ratio of 1.29 and a current ratio of 2.35. Oil States International has a 1-year low of $5.50 and a 1-year high of $14.50. The company has a market cap of $577.87 million, a PE ratio of -5.07 and a beta of 1.20. The business has a 50 day moving average of $8.45 and a 200-day moving average of $9.33.

Analyst Ratings Changes

A number of brokerages recently commented on OIS. Raymond James Financial lowered their target price on shares of Oil States International from $14.00 to $12.00 and set an “outperform” rating for the company in a research note on Friday, July 10th. Stifel Nicolaus decreased their price target on Oil States International from $15.00 to $14.00 and set a “buy” rating for the company in a report on Friday, July 31st. Weiss Ratings raised Oil States International from a “sell (d)” rating to a “sell (d+)” rating in a research report on Thursday, October 8th. Finally, Susquehanna increased their price objective on Oil States International from $8.00 to $9.00 and gave the company a “neutral” rating in a report on Monday, October 5th. Two investment analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the company currently has an average rating of “Hold” and a consensus target price of $11.67.

About Oil States International

Oil States International, Inc is an energy services and equipment company that supports oil and natural gas exploration, drilling, completion, production and infrastructure activities. The company serves operators, drilling contractors and other energy-industry customers through two primary areas: Well Site Services and Offshore/Manufactured Products.

Its Well Site Services business provides equipment and services used during the completion and production phases of a well. Offerings include completion and workover services, well testing, rental tools, frac water management and related support services.