Why Forum Energy Is Poised to Keep Plunging
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Forum Energy Technologies , which provides manufactured technologies to the energy sector, has received a distressing two-star ranking.
With that in mind, let's take a closer look at Forum Energy and see what CAPS investors are saying about the stock right now.
Forum Energyfacts
Headquarters | Houston |
Market Cap | $2.0 billion |
Industry | Oil and gas equipment and services |
Trailing-12-Month Revenue | $1.4 billion |
Management | Chairman/CEO C. Christopher Gaut (since 2010) |
Trailing-12-Month Return on Equity | 18.2% |
Cash/Debt | $17.9 million / $318.7 million |
Competitors | Cameron International |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 20% of the 15 members who have rated Forum Energy believe the stock will underperform the S&P 500 going forward.
Just yesterday, one of those Fools, mdriver78, highlighted Forum Energy's fourth-quarter outlook as particularly worrisome:
Downward guidance is seldom received well by the market. And the information indicated in the release seems to indicate some core business concerns. The [company] indicated the reduction in the expected range for full year 2012 earnings per diluted share is primarily the result of:
-- Significantly lower fourth quarter 2012 customer spending on capital equipment and consumable products than previously anticipated, especially in the company's Drilling product line.
-- Customer deferrals in accepting delivery of higher margin capital equipment orders from existing backlog.
-- Under absorption of manufacturing costs.
- -Acquisition transaction expenses, severance, weather related inefficiencies, and other transitory costs.
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The article Why Forum Energy Is Poised to Keep Plunging originally appeared on Fool.com.
Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool recommends FMC Technologies and National Oilwell Varco. Try any of our Foolish newsletter services free for 30 days. We Fools don't 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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