Key Energy Services Inc. (KEG: Quote) said it now expects results for its second quarter 2012 to be below prior expectations.
The company now expects second quarter 2012 earnings from continuing operations to be in the range of $0.18 to $0.20 per share. Consolidated revenue from continuing operations for the second-quarter are now expected to increase 5% to 7% compared to the first quarter 2012.
Key's prior second quarter guidance anticipated sequential consolidated revenue growth of 10% to 15% and earnings from continuing operations of $0.31 to $0.33 per share.
Analysts polled by Thomson Reuters expect the company to report earnings of $0.31 per share on revenues of $540.97 million for the second-quarter. Analysts' estimates typically exclude special items.
Second quarter revenue in the company's U.S. operations is expected to increase 2% to 4% sequentially, with approximately 45% of the growth coming from its rig service business.
Outside of the U.S., the company's second quarter revenue is expected to increase approximately 35% sequentially, largely on growth in Mexico and consistent with prior expectations.
The company said that its outlook for the remainder of 2012 is for international results to be in line with earlier expectations, with full year international revenue up approximately 75% from 2011.
However, the company now expects full year U.S. revenue to increase in the range of 15% compared to 2011, down from its earlier expectations of a 25% increase.
Analysts expect the company to report revenues of $2.26 billion for fiscal 2012.
The company said it now project 2012 U.S. operating income margins to decline by approximately 200 basis points from 2011, and reduced its 2012 capital spending budget by $100 million to $350 million.
Key's Chairman, President and Chief Executive Officer, Dick Alario said "Our revised forecast assumes lower activity growth than we previously estimated in the liquid shale markets throughout 2012 and further activity and pricing declines in the natural gas markets, which are impacting our fluid management, coiled tubing, and rental service businesses."
The company noted that it intends to report its second quarter 2012 financial results after market close on Thursday, July 26, 2012.
| || |
| To receive FREE breaking news email alerts for Key Energy Services Inc. and others in your portfolio|
by RTT Staff Writer
For comments and feedback: email@example.com