Oilfield Services Shares Drop on Earnings and Crude Price
Shares of oilfield service companies declined as crude prices fell and Cameron International Corp. issued a disappointing earnings outlook for the second quarter.
Cameron’s first quarter net income of $126.3 million, or 55 cents per share, beat the Wall Street forecast of 54 cents a share. The 34 percent revenue increase to $1.34 billion also topped analysts’ estimates.
But Cameron forecast second-quarter earnings of 60 to 62 cents per share. Analysts surveyed by Thomson Financial forecast 62 cents per share. The company raised its full-year earnings outlook based on rising orders and backlog, but some analysts wondered if it was raised enough.
The sector was also pulled down by Rowan Cos. Inc. Excluding a gain from an asset sale, the contract driller posted earnings of 84 cents a share and revenue of $485.5 million. The analysts’ average estimate called for profit of 85 cents a share on revenue of $517.4 million.
Rowan shares lost 90 cents, or 2.3 percent, at $38.09 in afternoon trading. Cameron gave up $2.08, or 4.2 percent, at $47.17.
