Oil States International Earnings Preview

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Investors are on the edge of their collective seats, hoping that Oil States International (NYS: OIS) will top analyst expectations for the fifth consecutive quarter. The company will unveil its latest earnings on Thursday, February 16. Oil States International, through its subsidiaries, is a provider of specialty products and services to oil and gas drilling and production companies throughout the world.

What analysts say:

  • Buy, sell, or hold?: Analysts are very bullish on this stock, unanimously backing it as a buy. Analysts like Oil States International better than competitor Dril-Quip overall. Four out of nine analysts rate Dril-Quip a buy compared to 11 of 11 for Oil States International. That rating hasn't budged in three months as analysts have remained unchanged in their opinion of the stock.
  • Revenue Forecasts: On average, analysts predict $965.3 million in revenue this quarter. That would represent a rise of 38.5% from the year-ago quarter.
  • Wall Street Earnings Expectations: The average analyst estimate is earnings of $1.69 per share. Estimates range from $1.61 to $1.80.

What our community says:
CAPS All-Stars are in strong support of the stock, with 96.5% granting it an "outperform" rating. The greater community backs the All-Stars, as 95.4% give it a rating of "outperform." Fools are gung-ho about Oil States International and haven't been shy with their opinions lately, logging 108 posts in the past 30 days. Despite the majority sentiment in favor of Oil States International, the stock has a middling CAPS rating of three out of five stars.

Management:
Oil States International's profit has risen year-over-year by an average of 65.2% over the past five quarters. The company increased its gross margin by 2.5 percentage points in the last quarter. Revenue rose 53.4% while cost of sales rose 48.4% to $665.9 million from a year earlier.

Now let's look at how efficient management is at running the business. Margins are a representation of how efficiently a company captures portions of sales dollars. Oil States International's gross margins have increased year-over-year for the past three quarters. Gross margins reflect the total sales revenue retained after costs. See how Oil States International has been doing for the last four quarters: 

QuarterQ3Q2Q1Q4
Gross Margin26.2%24.8%24.5%21.1%
Operating Margin16%14%12.5%9.7%
Net Margin10.2%9.1%8.2%6.3%

One final thing: If you want to keep tabs on Oil States International movements, and for more analysis on the company, make sure you add it to your Watchlist.

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Earnings estimates provided by Zacks.

At the time this article was published

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