Forum Energy Technologies (FET) Tops Q3 EPS by 1c, Revenues Miss

Forum Energy Technologies (NYSE: FET) reported Q3 EPS of $0.03, $0.01 better than the analyst estimate of $0.02. Revenue for the quarter came in at $267 million versus the consensus estimate of $283.87 million.

• Orders of $275 million in 3Q18, book to bill ratio of 103%
• Revenue of $267 million in 3Q18, up 34% y/y and (3%) q/q
• Diluted EPS of $(0.03) and adjusted EPS of $0.03 in 3Q18
• Adjusted EBITDA of $29 million in 3Q18, up 393% y/y and 7% q/q

Prady Iyyanki, Forum’s President and Chief Executive Officer, remarked, "Forum was on a strong growth trajectory until the third quarter when we were negatively impacted by the slowdown in U.S. completions activity. Despite these challenges, our team executed well during the quarter, as revenue was down only 3% and adjusted EBITDA increased sequentially.

"Although we are experiencing near term headwinds from the completions slowdown and tariffs, the long term market fundamentals for our product lines remain intact. We have benefited from the growth in North America onshore drilling and completions activity over the last several quarters, and we are now tendering for significant international orders as the broader recovery begins to unfold. Our balanced portfolio of consumable and capital equipment serving global markets across the well cycle positions us nicely to achieve continued long term growth.

"Our free cash flow was negative $4 million, a sequential improvement of $8 million. We ended the quarter with approximately $246 million of total liquidity. I am confident that we will deliver positive free cash flow in the fourth quarter and for the second half of the year."

For earnings history and earnings-related data on Forum Energy Technologies (FET) click here.

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