Forbes Energy Reports Loss Yet Again - Analyst Blog

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Forbes Energy Services Ltd.  ( FES ), 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.

Revenue: 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%.

Segment Details: In the reported quarter, revenues from the Well Servicing 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.

Revenue from Fluid Logistics segment came in at $51.6 million, facing a decline of 34.9% year over year, due to a reduction in truck hours.

Margins: 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 year-ago quarter.

Balance Sheet: 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 quarter.

Outlook: 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 2013.

Forbes Energy currently carries a Zacks Rank #3 (Hold). Other stocks worth a look in the oil & gas equipment & services sector are NSK Ltd. ( NPSKY ); carrying a Zacks Rank #1 (Strong Buy) along with Precision Castparts Corp. ( PCP ) and Worthington Industries Inc. ( WOR ), each carrying a Zacks Rank #2 (Buy).



FORBES ENERGY (FES): Free Stock Analysis Report

NSK LTD -UN ADR (NPSKY): Get Free Report

PRECISION CASTP (PCP): Free Stock Analysis Report

WORTHINGTON IND (WOR): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

Referenced Stocks: FES , NPSKY , PCP , WOR

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