Financial Data and Key Metrics Changes - The company reported revenues of $160 million for Q1 2025, meeting the guidance range of $160 million to $170 million, with adjusted EBITDA of $19 million, exceeding the expected range of $17.5 million to $18.5 million [4][11] - Adjusted net income totaled $4 million, or $0.06 per share, after excluding facility exit charges of $1 million [11] - Cash flow from operations was $9 million, reversing the historical trend of negative cash flow in Q1 due to seasonal working capital [5][12] Business Line Data and Key Metrics Changes - Offshore Manufactured Products segment generated revenues of $93 million with an adjusted EBITDA of $18 million, resulting in an adjusted EBITDA margin of 19%, down from 23% in the previous quarter [11][12] - Completion and Production Services segment reported revenues of $35 million and adjusted EBITDA of $9 million, with an adjusted EBITDA margin of 25%, significantly up from 12% in the fourth quarter [11][12] - Downhole Technologies segment generated revenues of $33 million with adjusted EBITDA of $2 million [12] Market Data and Key Metrics Changes - The company experienced strong demand in international and offshore regions, leading to bookings of $136 million and the highest backlog since September 2015, with a book-to-bill ratio of 1.5 times for the quarter [5][14] - Despite economic volatility and potential tariff impacts, the company anticipates that the majority of its backlog, which consists of projects outside the U.S., will remain largely unaffected [14][16] Company Strategy and Development Direction - The company plans to focus on organic growth opportunities, research and development, debt repayment, and share repurchases to drive value for customers and stockholders [16] - Strategic actions have been implemented to mitigate potential negative impacts from tariffs, including optimizing the supply chain and adjusting pricing to customers [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing demand for offshore and international products, despite potential pressures from domestic market conditions and crude oil prices [14][16] - The company expects strong free cash flow generation for the full year, with cash flow from operations projected to range between $65 million and $75 million [13][16] Other Important Information - The company plans to be opportunistic regarding share repurchases due to low stock prices and aims to maintain a robust free cash flow yield [16][32] - The anticipated impact of tariffs on costs is estimated to be in the range of 5% to 10% higher, particularly affecting the Downhole Technologies segment [38] Q&A Session Summary Question: Insights on bookings and backlog - Management noted that long-term development drilling programs are less affected by short-term commodity price fluctuations, indicating confidence in ongoing projects [20][21] Question: Sequential improvement in Completion and Production Services - Management highlighted that the recovery in Gulf operations and cost reduction efforts contributed to improved margins, with expectations for continued positive performance [25][28] Question: Balance sheet and capital allocation strategy - Management confirmed a focus on aggressive share repurchases and debt reduction, given the current low stock price and upcoming debt maturity [30][32] Question: Impact of tariffs on costs - Management indicated that the tariff impacts are expected to be minimal, with similar cost increases anticipated across competitors in the Downhole Technologies segment [38][40]

Financial Data and Key Metrics Changes - The company reported revenues of $160 million for Q1 2025, meeting the guidance range of $160 million to $170 million, with adjusted EBITDA of $19 million, exceeding the expected range of $17.5 million to $18.5 million [5][13] - Adjusted net income totaled $4 million, or $0.06 per share, after excluding facility exit charges of $1 million [13] - Cash flow from operations was $9 million, reversing the historical trend of negative cash flow in Q1 due to seasonal working capital [6][13] Business Line Data and Key Metrics Changes - Offshore Manufactured Products segment generated revenues of $93 million with an adjusted EBITDA of $18 million, resulting in an adjusted EBITDA margin of 19%, down from 23% in the previous quarter [13][14] - Completion and Production Services segment reported revenues of $35 million and adjusted EBITDA of $9 million, with an adjusted EBITDA margin of 25%, significantly up from 12% in the fourth quarter [13][14] - Downhole Technologies segment generated revenues of $33 million with adjusted EBITDA of $2 million [14] Market Data and Key Metrics Changes - The company experienced strong demand in international and offshore regions, leading to bookings of $136 million and the highest backlog since September 2015, with a book-to-bill ratio of 1.5 times [6][17] - Despite concerns over tariffs and potential economic impacts, the company anticipates that operations outside the U.S. will remain largely unaffected [9][12] Company Strategy and Development Direction - The company plans to focus on organic growth opportunities, research and development, debt repayment, and share repurchases to drive value for shareholders [18] - Strategic actions have been implemented to mitigate potential negative impacts from tariffs, including optimizing the supply chain and adjusting pricing [10][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing demand for offshore and international products, despite potential pressures from domestic market conditions and crude oil prices [17] - The company maintained its full-year revenue guidance of $700 million to $735 million and EBITDA guidance of $88 million to $93 million, citing strong bookings and improved margins [18] Other Important Information - The company generated $9 million from the monetization of equipment and inventory, which was used for capital expenditures and share repurchases [6][14] - Planned capital expenditures for the year are expected to total $25 million, with a significant portion allocated to the new facility in Batam, Indonesia [14][15] Q&A Session Summary Question: Insights on bookings and backlog - Management noted that long-cycle projects, particularly in development drilling, are less affected by short-term commodity price fluctuations, indicating a stable outlook for ongoing projects [21][22] Question: Impact of Gulf operations on margins - Management confirmed that Gulf operations were a major driver of margin improvement, with expectations for continued positive activity in the region [27][30] Question: Share repurchase strategy amidst low stock prices - The company plans to be aggressive in share repurchases given the current low stock price, while also considering debt reduction as a priority [31][34] Question: Potential tariff impacts on costs - Management indicated that tariff impacts are expected to be minimal, with potential cost increases in the Downhole Technologies segment being manageable through price adjustments [40][42]

Financial Data and Key Metrics Changes - The company reported revenues of $160 million for Q1 2025, meeting the guidance range of $160 million to $170 million, with adjusted EBITDA of $19 million, exceeding the expected range of $17.5 million to $18.5 million [4][12] - Cash flow from operations was $9 million, reversing the historical trend of negative cash flow in Q1 due to seasonal working capital trends [5][12] - The company generated $9 million from the monetization of equipment and inventory, which was used for capital expenditures and share repurchases [5][12] Business Line Data and Key Metrics Changes - Offshore Manufactured Products segment generated revenues of $93 million with an adjusted EBITDA of $18 million, resulting in an adjusted EBITDA margin of 19%, down from 23% in the previous quarter [12] - Completion and Production Services segment reported revenues of $35 million and adjusted EBITDA of $9 million, with an adjusted EBITDA margin of 25%, significantly up from 12% in the previous quarter [12][13] - Downhole Technologies segment had revenues of $33 million and adjusted EBITDA of $2 million [13] Market Data and Key Metrics Changes - The company experienced strong demand in international and offshore regions, leading to bookings of $136 million and the highest backlog since September 2015, with a book-to-bill ratio of 1.5 times [5][15] - Despite concerns over tariffs and potential economic downturns, the company anticipates that operations outside the U.S. will remain largely unaffected [6][8] Company Strategy and Development Direction - The company plans to focus on organic growth opportunities, research and development, debt repayment, and share repurchases to drive value for customers and stockholders [17] - The strategic sourcing of goods and materials is being assessed to mitigate potential impacts from U.S. tariffs, with a focus on maintaining operations and profitability [6][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing demand for offshore and international products, despite potential pressures from domestic market conditions and crude oil prices [15] - The company maintained its annual revenue guidance of $700 million to $735 million and EBITDA guidance of $88 million to $93 million for 2025, citing strong bookings and improved margins [17] Other Important Information - The company plans to be opportunistic regarding share repurchases due to low stock prices and aims for a free cash flow conversion rate of over 40% [33] - The impact of tariffs on costs is expected to be in the range of 5% to 10%, particularly affecting the Downhole Technologies segment [37][38] Q&A Session Summary Question: Insights on bookings and backlog - Management noted that long-term development drilling programs are less affected by short-term commodity price fluctuations, indicating confidence in ongoing projects [20][21] Question: Impact of Gulf operations on margins - Management highlighted a strong recovery in Gulf operations, contributing to improved margins in the Completion and Production Services segment, with expectations for continued positive activity [26][30] Question: Capital allocation priorities - The company plans to prioritize share repurchases and debt reduction, given the current low stock price and upcoming debt maturity [31][33] Question: Tariff impact on costs - Management indicated that tariff impacts are expected to be minimal, with similar cost increases anticipated across competitors in the Downhole Technologies segment [38][40]

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]

Group 1 - Oil States International (NYSE: OIS) has strategic priorities set for the start of 2025, focusing on the oilfield equipment services sector [1] - The analyst has over 14 years of experience in stock analysis, with a specific focus on the energy sector for the past 7 years [1] - The company also covers the Industrial Supply industry, indicating a diversified analytical approach [1] Group 2 - There is no current stock, option, or derivative position held by the analyst in any mentioned companies, nor plans to initiate such positions in the near future [2] - The article expresses the analyst's own opinions without any compensation from the companies discussed [2]

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]

Core Viewpoint - The article emphasizes the importance of value investing and highlights Oil States International (OIS) as a strong value stock based on its financial metrics and Zacks Rank [1][2][7]. Company Analysis - Oil States International (OIS) has a Zacks Rank of 2 (Buy) and an A grade for Value, indicating strong potential for value investors [4]. - The stock is currently trading at a P/E ratio of 11.88, which is lower than the industry average of 13.88, suggesting it may be undervalued [4]. - OIS has a P/B ratio of 0.50, significantly lower than the industry average of 1.21, further indicating its attractive valuation [5]. - The P/S ratio for OIS stands at 0.47, compared to the industry average of 1.21, reinforcing the notion that the stock is undervalued [6]. - Overall, OIS's financial metrics suggest it is likely undervalued, and its earnings outlook appears strong, making it an impressive value stock at this time [7].

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 ...