Oil drilling equipment maker
Cameron International Corp.
) reported first quarter earnings per share - excluding charges -
of 70 cents, missing the Zacks Consensus Estimate by 4 cents. The
weaker-than-expected results were mainly due to muted North
American activity levels.
However, comparing year over year, the Houston-based company's
earnings per share improved by a handsome 29.6% - from 54 cents
(adjusted) to 70 cents - on strength in its surface systems
Cameron's quarterly revenue, at $2,117.7 million, was up 17.4%
year over year but was below the Zacks Consensus Estimate of
Drilling & Production Systems (DPS):
Revenues for the DPS segment totaled $1,269.0 million in the
first quarter, an increase of 21.8% from the year-ago period,
while the DPS segment EBITDA rose 16.7% year over year to $198.1
million. The higher profitability could be attributed to the
receipt of large subsea orders.
Valves & Measurement (V&M):
Quarterly revenues in Cameron's V&M segment totaled $521.5
million, up 6.2% year over year. The segment EBITDA increased
19.8% year over year to $123.3 million. The positive comparisons
were driven by strong infrastructure activity levels throughout
Process & Compression Systems (PCS):
Revenues in the PCS segment jumped 20.7% year over year to $327.2
million. The segment EBITDA witnessed a year-over-year
improvement of 55.6% to $30.8 million, driven by operational
During the quarter, Cameron received orders totaling $3,633.5
million, up 41.4% year over year, reflecting a 62.4% increase in
the DPS segment. The composition of current order booking is 75%
for DPS, 15% for V&M and 10% for PCS.
As of Mar 31, 2013, Cameron's total backlog stood at a record
$10,037.0 million, up significantly from the year-earlier level
of $6,766.5 million, driven by sharply higher backlog in the DPS
Capital Expenditure & Balance Sheet
During the quarter, Cameron's capital expenditures amounted to
$83.7 million. As of Mar 31, 2013, cash and cash equivalents
stood at $1,082.4 million, while long-term debt was $2,048.4
million (with debt-to-capitalization ratio of 26.6%).
Cameron management lowered its 2013 earnings per share guidance
to the $3.50-$3.70 range from the previous band of $3.70-$3.95,
while the second quarter profitability is likely to be in the
range of 75-80 cents. The current Zacks Consensus Estimate for
Cameron's second quarter is 91 cents per share, while that for
the full year is $3.87 per share - both higher than the company
Cameron, which competes with
FMC Technologies Inc.
National Oilwell Varco Inc.
) in the 'Oilfield Machineries and Equipment' sector, currently
carries a Zacks Rank #3 (Hold), implying that it is expected to
perform in line with the broader U.S. equity market over the next
one to three months.
Meanwhile, one can look at
Natural Gas Services Group Inc.
) as a good buying opportunity. This energy equipment supplier -
sporting a Zacks Rank #2 (Buy) - has a solid secular growth
stories with potential to rise from current levels.
CAMERON INTL (CAM): Free Stock Analysis
FMC TECH INC (FTI): Free Stock Analysis
NATURAL GAS SVC (NGS): Free Stock Analysis
NATL OILWELL VR (NOV): Free Stock Analysis
To read this article on Zacks.com click here.