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

Key Points

• Oil States International beat quarterly expectations: EPS was $0.15 versus the $0.12 consensus, while revenue reached $169.76 million, up 2.8% year over year and above estimates.
• Offshore demand remains a key growth driver: Manufactured Products backlog climbed 21% year over year to nearly $482 million, supported by offshore, international and military demand.
• Management issued positive fourth-quarter guidance of $172 million–$184 million in revenue and $20 million–$23 million in adjusted EBITDA, while authorizing a new $50 million share-repurchase program; however, delayed cash generation and elevated input costs remain headwinds.

Oil States International (NYSE:OIS - Get Free Report) released its quarterly earnings data on Friday. The oil and gas company reported $0.15 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.12 by $0.03, FiscalAI reports. The firm had revenue of $169.76 million during the quarter, compared to analysts' expectations of $162.62 million. Oil States International had a negative net margin of 16.78% and a positive return on equity of 4.28%. Oil States International's revenue was up 2.8% compared to the same quarter last year. During the same period last year, the business earned $0.08 earnings per share.

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 Trading Up 5.5%

Oil States International stock traded up $0.50 during midday trading on Friday, reaching $9.58. 1,463,826 shares of the stock traded hands, compared to its average volume of 881,734. The company has a current ratio of 2.35, a quick ratio of 1.29 and a debt-to-equity ratio of 0.03. The firm has a market cap of $577.87 million, a PE ratio of -5.07 and a beta of 1.20. The company has a 50-day simple moving average of $8.45 and a two-hundred day simple moving average of $9.33. Oil States International has a 12-month low of $5.50 and a 12-month high of $14.50.

Analyst Ratings Changes

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

Oil States International Company Profile

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.

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