Tesco Corp (TESO) Misses Q1 EPS by 4c

Tesco Corp (NASDAQ: TESO) reported Q1 EPS of $0.21, $0.04 worse than the analyst estimate of $0.25. Revenue for the quarter came in at $121.4 million versus the consensus estimate of $137.52 million.

Julio Quintana, TESCO's Chief Executive Officer, commented, "Due mainly to a number of one off charges associated with our international operations, reported Q1 2014 bottom line results came in below our expectations. Adjusting for these items our EPS would have been $0.21 per share. As we expected, top drive shipments were lower in Q1 2014 due to the timing of shipments from backlog and we had lower top drive rental utilization in Mexico due to annual contract startup delays.

However, during the first quarter, there were several positive trends that give us greater optimism for the full year 2014 results. Tubular Services generated record quarterly revenues of $56.7 million, record adjusted operating income of $12.3 million, and record adjusted operating margin of 21.7%. With continued growth of our offshore work and improving activity levels in North America, we believe Tubular Services is on track to post another record year. In addition, we ended the quarter with a backlog of 45 units with the total potential value of $54.7 million, an increase of potential value of 24% over the prior quarter. With a backlog of 43 units with a total potential value of $51.9 million at present and the number of active quotations, we believe the expected new top drive shipments in 2014 could be near 2012 levels.

Our balance sheet and cash flow generation continued to be strong. Cash levels remained flat during a quarter that typically has higher cash outflows. This strength combined with improving profitability will allow us to make investments that drive growth along with returning cash to shareholders."

Separately, the company announced it initiated a dividend and $100 million buyback.

For earnings history and earnings-related data on Tesco Corp (TESO) click here.

You May Also Be Interested In

• Grandstand Limited (GRSD) Tops Q2 EPS by 5c; Offers Guidance
• Caribou Biosciences, Inc. (CRBU) Tops Q2 EPS by 7c
• Xos, Inc (XOS) Tops Q2 EPS by 5c