Company Performance - Oil States International (OIS) reported quarterly earnings of $0.06 per share, exceeding the Zacks Consensus Estimate of $0.05 per share, compared to a loss of $0.03 per share a year ago, representing an earnings surprise of 20% [1] - The company posted revenues of $159.94 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 3.24%, and down from $167.26 million year-over-year [2] - Over the last four quarters, OIS has surpassed consensus EPS estimates three times, but has topped consensus revenue estimates only once [2] Stock Performance - OIS shares have declined approximately 30.6% since the beginning of the year, while the S&P 500 has decreased by 5.3% [3] - The current Zacks Rank for OIS is 4 (Sell), indicating expectations of underperformance in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.10 on revenues of $174.15 million, and for the current fiscal year, it is $0.36 on revenues of $698.37 million [7] - The estimate revisions trend for OIS is currently unfavorable, which may change following the recent earnings report [6] Industry Context - The Oil and Gas - Mechanical and Equipment industry, to which OIS belongs, is currently ranked in the bottom 10% of over 250 Zacks industries, suggesting potential challenges ahead [8]

Financial Performance - Consolidated revenues for Q1 2025 were $159.9 million, a decrease of 3% sequentially and 4% year-over-year[5]. - Net income for Q1 2025 was $3.2 million, or $0.05 per share, down 79% from $15.2 million in Q4 2024[6]. - Adjusted EBITDA for Q1 2025 was $18.7 million, consistent with Q4 2024, but up 21% from $15.5 million year-over-year[3]. - Revenues for Q1 2025 were $159.938 million, a decrease of 2.0% from $164.595 million in Q4 2024 and a decrease of 4.4% from $167.262 million in Q1 2024[29]. - Net income for Q1 2025 was $3.158 million, compared to a net income of $15.164 million in Q4 2024 and a net loss of $13.374 million in Q1 2024[29]. - Operating income for Q1 2025 was $5.639 million, down from $18.484 million in Q4 2024 and a loss of $11.177 million in Q1 2024[29]. - Adjusted net income for Q1 2025 was $3,892,000, compared to $5,537,000 in Q4 2024 and a loss of $1,873,000 in Q1 2024[45]. - Free cash flow for Q1 2025 was $9,322,000, a recovery from a negative free cash flow of $19,157,000 in Q1 2024[48]. Segment Performance - Offshore Manufactured Products segment revenues were $92.6 million, down 14% sequentially but up 7% year-over-year[3]. - Completion and Production Services segment revenues increased by 15% sequentially to $34.5 million, with an Adjusted Segment EBITDA margin of 25%[13]. - Downhole Technologies segment revenues rose to $32.8 million, with an operating loss of $2.1 million, an improvement from the previous quarter[15]. - The company reported an operating income of $14,276,000 in the Offshore Manufactured Products segment for Q1 2025, down from $21,009,000 in Q4 2024 but up from $10,603,000 in Q1 2024[42]. - Completion and Production Services segment showed an operating income of $3,503,000 in Q1 2025, recovering from a loss of $4,004,000 in Q4 2024[42]. - Downhole Technologies segment reported an operating loss of $2,124,000 in Q1 2025, an improvement from a loss of $4,031,000 in Q4 2024[42]. Cash Flow and Assets - Cash flows from operations were $9 million, reversing a historical trend of negative cash flows in Q1[7]. - Cash and cash equivalents increased to $66.828 million at the end of Q1 2025, up from $65.363 million at the end of Q4 2024[31]. - Total assets decreased to $990.735 million as of March 31, 2025, from $1,005.108 million as of December 31, 2024[31]. Awards and Contracts - The company received the 2025 Spotlight on New Technology Award for its TowerLok™ Wind Tower Connector technology[21]. - Oil States received a contract award exceeding $25 million for a deepwater production facility project in Brazil in Q1 2025, along with multi-year project awards totaling $26 million[27]. Other Financial Metrics - The company incurred facility consolidation/closure and other charges of $930,000 in Q1 2025, compared to $1,941,000 in Q4 2024[45]. - The weighted average number of diluted common shares outstanding was 60,167,000 in Q1 2025, down from 61,392,000 in Q4 2024[45]. - The company reported a tax provision of $196,000 for Q1 2025, compared to a tax benefit of $2,560,000 in Q4 2024[45]. - Backlog reached $357 million, the highest level since September 2015, with a book-to-bill ratio of 1.5x[12]. - The company continued to invest in expanding its manufacturing capabilities in Batam, Indonesia to meet growing international customer demand[27]. - The company completed the manufacture of its third Merlin™ Mineral Riser system, designed for a water depth of 6,000 meters[27].

Core Viewpoint - The article highlights the potential of Oil States International (OIS) as a strong value stock, supported by its favorable financial metrics and Zacks Rank. Group 1: Company Overview - Oil States International (OIS) currently holds a Zacks Rank of 2 (Buy) and an A grade for Value [4] - The stock is trading at a P/E ratio of 7.42, significantly lower than the industry average of 11.08 [4] - OIS's Forward P/E has fluctuated between 7.03 and 28.91 over the past year, with a median of 13.79 [4] Group 2: Financial Metrics - The P/S ratio for OIS is 0.3, compared to the industry's average P/S of 0.64, indicating potential undervaluation [5] - OIS has a P/CF ratio of 4.71, which is lower than the industry's average P/CF of 5.50, suggesting a solid cash outlook [6] - Over the past 12 months, OIS's P/CF has ranged from 3.59 to 9.28, with a median of 6.47 [6] Group 3: Investment Potential - The combination of OIS's strong earnings outlook and favorable financial ratios suggests that the stock is likely undervalued at present [7]

I discussed Oil States International (NYSE: OIS ) in the past, and you can read the latest article here , published on January 3. At the start of 2025, OIS’s strategic priorities revolve aroundI have more than 14 years of experience in analyzing and writing on stocks. I write on both long and short sides in an unbiased manner. I have been covering the energy sectors for the past 7 years, with the primary focus on the oilfield equipment services sector. I also cover the Industrial Supply industry. I occasion ...

Group 1: Momentum Investing Overview - Momentum investing deviates from the traditional strategy of "buying low and selling high," focusing instead on "buying high and selling higher" for quicker profits [1] - Fast-moving trending stocks can be challenging to enter at the right time, as they may lose momentum if future growth does not justify their high valuations [2] Group 2: Investment Strategy - A safer investment approach involves targeting bargain stocks that exhibit recent price momentum, utilizing tools like the Zacks Momentum Style Score to identify promising stocks [3] - Oil States International (OIS) is highlighted as a strong candidate, showing a four-week price change of 7.6%, indicating growing investor interest [4] Group 3: Performance Metrics - OIS has demonstrated a 0.4% gain over the past 12 weeks, with a beta of 2.1, suggesting it moves 110% higher than the market in either direction [5] - The stock has a Momentum Score of B, indicating a favorable time to invest based on momentum [6] Group 4: Earnings and Valuation - OIS has received a Zacks Rank 2 (Buy) due to upward revisions in earnings estimates, which typically attract more investor interest [7] - The stock is trading at a Price-to-Sales ratio of 0.47, suggesting it is undervalued, as investors pay only 47 cents for each dollar of sales [7] Group 5: Additional Opportunities - Besides OIS, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting further investment opportunities [8] - The Zacks Premium Screens offer over 45 different strategies tailored to various investing styles, aiding in stock selection [9]

Investors should also recognize that OIS has a P/B ratio of 0.50. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 1.21. Within the past 52 weeks, OIS's P/B has been as high as 0.60 and as low as 0.37, with a median of 0.46. Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be intere ...

Shares of Oil States International (OIS) have gained 1.7% over the past four weeks to close the last trading session at $5.44, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $7.25 indicates a potential upside of 33.3%.The mean estimate comprises three short-term price targets with a standard deviation of $1.64. While the lowest estimate of $5.75 indicates a 5.7% increase from t ...

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a v ...

Investors might want to bet on Oil States International (OIS) , as earnings estimates for this company have been showing solid improvement lately. The stock has already gained solid short-term price momentum, and this trend might continue with its still improving earnings outlook.The rising trend in estimate revisions, which is a result of growing analyst optimism on the earnings prospects of this energy services company, should get reflected in its stock price. After all, empirical research shows a strong ...

Oil States International (OIS) closed the last trading session at $5.33, gaining 1.9% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $7.25 indicates a 36% upside potential.The mean estimate comprises three short-term price targets with a standard deviation of $1.64. While the lowest estimate of $5.75 indicates a 7.9% increase from the current price level, the most optimistic analy ...