Overview

• U.S. energy equipment maker's Q1 revenue fell 9% yr/yr, missing analyst expectations

• Adjusted EPS for Q1 met analyst expectations

• Company cites contract delays, higher costs from geopolitical conflict and project deferrals

Outlook

• Company says ongoing geopolitical conflict and Middle East uncertainty may impact near-term activity

• Oil States expects to face near-term volatility but says it is positioned for longer-term changes

Result Drivers

• CONTRACT DELAYS & PROJECT DEFERRALS - Co said heightened geopolitical conflict and uncertainty in the Middle East contributed to contract award delays and transitory project deferrals, reducing revenue and increasing costs

• HIGHER INPUT COSTS - Planned profitability improvements in Downhole Technologies were delayed by higher raw material and shipping costs

• U.S. LAND EXIT & RESTRUCTURING - Co continued to exit certain U.S. land-based operations, incurring restructuring and asset impairment charges

Company press release: ID:nBw5WkDRRa

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Revenue	Miss	$145.4 mln	$153.79 mln (4 Analysts)
Q1 Adjusted EPS	Meet	$0.09	$0.09 (4 Analysts)
Q1 EPS		$0.02
Q1 Net Income		$1.1 mln
Q1 Adjusted EBITDA		$17 mln

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the oil related services and equipment peer group is "buy"

• Wall Street's median 12-month price target for Oil States International Inc is $13.50, about 20.5% above its May 4 closing price of $11.20

• The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 17 three months ago

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