Susquehanna Cuts Oil States International Estimates On 'Challenging' U.S. Landscape

In a report published Friday, Susquehanna analyst Charles P. Minervino maintained a Neutral rating on

, while lowering the price target from $45 to $44. The company has lowered its 2Q15 revenue and EBITDA guidance for the Well Site Services business. "The company cited a continued deterioration in US drilling and completions activity levels, as well as challenging weather conditions in Texas and Oklahoma, as having negatively impacted results during the quarter," Minervino stated. The analyst now expects Oil States International to witness a sequential revenue decline of 39 percent for the Completion Services segment in Q2, driven by a higher than earlier anticipated impact of sharp pricing concessions and non-completion of wells. Drilling Services revenues are also expected to decline sequentially, by 24 percent. On the other hand, the Susquehanna report also stated, "With US rig count now seemingly close to a bottom, and early signs of a recovery in demand beginning to materialize, we believe Well Site Services is poised for a modest recovery in 2H15." The 2015 and 2016 EPS estimates have been lowered to reflect the revised 2Q15 guidance.