Home / Business and Economy / Oilfield Services Stocks Dip Despite Revenue Beats
Oilfield Services Stocks Dip Despite Revenue Beats
2 Jun
Summary
- Oilfield services sector saw revenue beats but stock prices declined.
- Select Water Solutions outperformed with revenue and earnings beats.
- Oceaneering reported revenue growth but missed earnings targets.
The oilfield services sector has concluded its Q1 earnings season with generally positive revenue results. Across 26 tracked stocks, revenues surpassed analyst consensus estimates by 3.8%. However, this top-line success has not translated to stock performance, as share prices have collectively fallen by 4.7% on average since their latest earnings announcements.
Select Water Solutions (WTTR) was a notable standout, reporting $366 million in revenue, a 2.3% year-on-year decrease but exceeding expectations by 6.8%. The company achieved significant beats on both EPS and EBITDA estimates, leading to a 4.1% stock increase post-earnings.
Oceaneering International (OII), a provider of subsea equipment, reported $692.4 million in revenue, a 2.7% year-on-year rise and a 3.5% beat on estimates. However, the company missed analyst expectations for EBITDA and EPS, resulting in its stock remaining flat after the report.
