Key Energy Services Goes Negative

Seth Jayson, The Motley Fool
Updated

Key Energy Services (NYS: KEG) reported earnings on Oct. 31. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended Sep. 30 (Q3), Key Energy Services met expectations on revenues and met expectations on earnings per share.

Compared to the prior-year quarter, revenue dropped slightly and GAAP earnings per share contracted to a loss.


Margins shrank across the board.

Revenue details
 Key Energy Services chalked up revenue of $490.9 million. The 10 analysts polled by S&P Capital IQ wanted to see revenue of $495.0 million on the same basis. GAAP reported sales were 2.1% lower than the prior-year quarter's $501.3 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
 EPS came in at $0.15. The 16 earnings estimates compiled by S&P Capital IQ forecast $0.15 per share. GAAP EPS were -$0.65 for Q3 compared to $0.30 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
 For the quarter, gross margin was 31.6%, 560 basis points worse than the prior-year quarter. Operating margin was 9.9%, 700 basis points worse than the prior-year quarter. Net margin was -7.8%, 1,660 basis points worse than the prior-year quarter.

Looking ahead
 Next quarter's average estimate for revenue is $492.8 million. On the bottom line, the average EPS estimate is $0.14.

Next year's average estimate for revenue is $1.99 billion. The average EPS estimate is $0.72.

Investor sentiment
 The stock has a five-star rating (out of five) at Motley Fool CAPS, with 287 members out of 301 rating the stock outperform, and 14 members rating it underperform. Among 69 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 68 give Key Energy Services a green thumbs-up, and one 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 $10.05.

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The article Key Energy Services Goes Negative originally appeared on Fool.com.

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. The Motley Fool has no positions in the stocks mentioned above. 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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