Forbes Energy Services Ltd.
), an oilfield services contractor, reported sequentially
improved results for the first quarter of 2013, with a loss per
share of 13 cents, narrower than the Zacks Consensus Estimate of
a loss of 17 cents. Increased pricing pressures coupled with
diminishing demand negatively impacted earnings.
In the first quarter of 2013, total sales for Forbes Energy were
$101.7 million, down 22.6% year over year, primarily due to
shorter truck and rig hours. Revenues missed the Zacks Consensus
Estimate of $110.0 million by 7.3%.
In the reported quarter, revenues from the
segment was recorded at $50.2 million, a decrease of 4.0%
compared with the year-ago quarter. Fewer 24-hour operational
rigs led to the decline.
segment came in at $51.6 million, facing a decline of 34.9% year
over year, due to a reduction in truck hours.
General and administrative expenses amounted to $7.3 million,
against $10.7 million recorded in the first quarter of 2012.
Forbes Energy's operating profit margin in the quarter plunged
818 basis points to 3.6% from 11.8% million reported in the
Exiting the first quarter 2013, Forbes Energy's cash and cash
equivalents were approximately $31.2 million, compared with $17.6
million in the previous quarter. Total debt balance stood at
$302.5 million against $306.3 million in the preceding
Forbes Energy believes that it is in line with the $20.0-$23.0
million capital expenditure guidance issued in the last quarter.
The company also predicts a stable pricing environment in
Forbes Energy currently carries a Zacks Rank #3 (Hold). Other
stocks worth a look in the oil & gas equipment & services
); carrying a Zacks Rank #1 (Strong Buy) along with
Precision Castparts Corp.
Worthington Industries Inc.
), each carrying a Zacks Rank #2 (Buy).
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