UPDATE: BMO Capital Markets Reiterates Market Perform Rating, Lowers PT on Oil States International on 4Q12 EPS
In a report published Friday, BMO Capital Markets reiterated its Market Perform rating on Oil States International (NYSE: OIS), but lowered its price target from $88.00 to $85.00.
BMO Capital Markets noted, “OIS reported 4Q12 EPS of $1.78 vs. our $1.90 and consensus a penny below us. Overall revenues were 4% higher than we expected lead by surprisingly strong well site services (now called Completion Services (CS)) and tubular services. EBITDA margins were generally higher for most segments with the standout again CS. Despite the strength, overall EBITDA fell shy of our model (but matched consensus). Offshore Products was the drag with a $2.5mm inventory adjustment charge, some delivery slippage, and slightly less favorable mix the drivers. More transitory than fundamental. Core Accommodations performance was generally in line with EBITDA margins of 43% and RevPAR of $119. Net-net another reasonable quarter from OIS.”
Oil States International closed on Thursday at $77.40.
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