Key Energy Services Misses on Both Revenue and Earnings
Key Energy Services (NYS: KEG) reported earnings on April 26. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), Key Energy Services missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share increased.
Margins grew across the board.
Key Energy Services notched revenue of $486.8 million. The 10 analysts polled by S&P Capital IQ predicted sales of $508.7 million on the same basis. GAAP reported sales were 24% higher than the prior-year quarter's $391.0 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 $0.23. The 15 earnings estimates compiled by S&P Capital IQ predicted $0.26 per share. GAAP EPS were $0.02 for Q1 compared to -$0.13 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 36.0%, 550 basis points better than the prior-year quarter. Operating margin was 13.0%, 620 basis points better than the prior-year quarter. Net margin was 0.7%, 530 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $557.7 million. On the bottom line, the average EPS estimate is $0.39.
Next year's average estimate for revenue is $2.33 billion. The average EPS estimate is $1.64.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 284 members rating the stock outperform and 15 members rating it underperform. Among 79 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 77 give Key Energy Services a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Key Energy Services is outperform, with an average price target of $20.50.
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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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