Posts for Ticker ‘SII’

Underwriting Syndicate Bonanza Continues (FTNT, AWK, BZ, LFT, SII)

This morning we have a syndicate bonanza with a very solid IPO pricing and many secondary offerings getting priced.  Fortinet, Inc. (NASDAQ: FTNT) priced 12.5 million shares in IPO at $12.50, above the $9.00 to $11.00 range.   There are also many secondary offerings:  American Water Works (NYSE: AWK) 37.35 million shares priced at $21.63; Boise Inc. (NYSE: BZ) 17 million shares priced at $4.85; Longtop Financial Technologies Limited (NYSE: LFT) 3.7 million shares priced at $31.25; Smith International Inc. (NYSE: SII) priced 28 million shares priced at $26.50.

We have detailed information on the size, use of funds, underwriters, and performance on each below.
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Posted on: November 18, 2009 – 10:01 am in ADR, IPOs, Secondary Offering, , , , ,

Top Analyst Downgrades (AIG, ALL, BBY, CLX, ERTS, ITT, NWS, SII, TYX, VIP)

These are this Friday morning’s top analyst downgrades and cautious research calls from Wall Street:

American International Group (NYSE: AIG) Cut to Underperform at Wells Fargo.
Allstate (NYSE:ALL) Cut to Sell at Goldman Sachs.
Best Buy (NYSE: BBY) Cut to Perform at Oppenheimer.
Clorox (NYSE: CLX) Cut to Neutral at Goldman Sachs.
Electronic Arts (NASDAQ: ERTS) Cut to Neutral at BofA/Merrill Lynch.
ITT Corp. (NYSE: ITT) Cut to Equalweight at Barclays.
News Corp. (NYSE: NWS) Cut to Underperform at Cowen.
Smith International (NYSE:SII) Cut to Neutral at Goldman Sachs.
Tyco (NYSE: TYC) Cut to Equalweight at Barclays.
VimpelCom (NYSE: VIP) Cut To Hold at RBS.

JON C. OGG

Posted on: September 11, 2009 – 8:06 am in Analyst Calls, , , , , , , , , ,

Trouble Continues in Oilfield Services (SII, HAL, WFT, SLB)

oil-well-image11Well drilling and completion services just aren’t paying off for anyone this reporting season. Smith International Inc. (NYSE:SII) reported diluted EPS of $0.44 on revenues $2.41 billion. After deleting a restructuring charge of $34.8 million, EPS reaches $0.52. First quarter 2008 EPS was $0.87 on $2.37 billion in revenue.

Like its brethren oilfield services providers Halliburton Company (NYSE:HAL), Weatherford International Ltd. (NYSE:WFT), and Schlumberger Ltd. (NYSE:SLB), lowered targets didn’t rescue Smith.

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Posted on: April 27, 2009 – 8:38 am in Earnings, Oil & Gas, , , ,

Smith International Sinks on (SII, SLB, HAL, BHI, WFT)

Smith International, Inc. (NYSE:SII) led the parade of oil field services stocks downhill yesterday. Smith opened Thursday more than $1.50/share lower than Wednesday’s close and finished the day even lower. Schlumberger Limited (NYSE:SLB), Baker Hughes Inc. (NYSE:BHI), Halliburton Company (NYSE:HAL), and Weatherford International Ltd. (NYSE:WFT) all followed suit.

Smith reported soft fourth quarter and full year results yesterday. Non-GAAP EPS amounted to $1.00 on income from continuing operations of $218.6 million and revenue of $3.06 billion. Analysts were expecting EPS of $1.02 on revenue of $3.04 billion.

The company’s CFO noted that Smith has "one of the best cash flow downturn profiles in our industry. Over the coming quarters, we would expect to generate significant free cash flow as the business contracts…." She didn’t explain what that means, exactly, but one could interpret it to mean that as economic conditions worsen, Smith will perform better. Sure, we’ll buy that.

Paul AusickAngrybear

Posted on: January 30, 2009 – 12:43 pm in Alternative Energy, , , , ,

Top Pre-Market Analyst Downgrades (AINV, BHI, CNI, RDEN, KSU, PALM, RL, RRGB, SII, TER)

These are some of the top pre-market analyst downgrades on Wall Street this Tuesday morning:

  • Apollo Investment (AINV) Cut to Neutral at JPMorgan.
  • Baker Hughes (BHI) Cut to Underweight at Morgan Stanley.
  • Canadian National Railway (CNI) Cut to Neutral at Goldman Sachs.
  • Elizabeth Arden, Inc. (RDEN) Cut to Market Perform at Wachovia.
  • Kansas City Southern (KSU) Cut to Neutral at JPMorgan.
  • Palm (PALM) Cut to Neutral at JPMorgan.
  • Polo Ralph Lauren (RL) Cut to Sell at Goldman Sachs.
  • Red Robin Gourmet (RRGB) Cut to Equal Weight at Morgan Stanley.
  • Smith International (SII) Cut to Equal Weight at Morgan Stanley.
  • Teradyne (TER) Cut to Perform at Oppenheimer.

Jon C. Ogg
January 20, 2009

Posted on: January 20, 2009 – 7:51 am in Analyst Calls, , , , , , , , , ,

Analysts Downgrading Oil Patch (NOV, PDE, REP, SII, STO, SU, RIG)

Burning_money_pic_2Oil_well_imageIt is probably no huge shock that downgrades are coming more than upgrades now that oil has come down so much.  Too bad these were not the calls several months ago.  Here are some of the downgrades this Wednesday in the oil patch:

  • National Oilwell Varco (NYSE: NOV) Cut to Underweight at JPMorgan.
  • Pride International (NYSE: PDE) Cut to Underweight at JPMorgan.
  • Repsol SA (NYSE: REP) Cut to Neutral at UBS.
  • Smith International (NYSE: SII) Cut to Neutral at JPMorgan.
  • Statoil (NYSE: STO) Cut to Neutral at UBS.
  • Suncor Energy (NYSE: SU) Cut to Sector Perform at RBC.
  • Transocean (NYSE: RIG) Cut to Neutral at JPMorgan.

Jon C. Ogg
January 14, 2009

Posted on: January 14, 2009 – 7:56 am in Analyst Calls, Oil & Gas, , , , , , ,

Smith International, Good Enough (SII)

Oil_well_logo_2Oil field services company Smith International (NYSE:SII) reported third quarter earnings before the market opened this morning. EPS reached $1.00 on revenues of $2.85 billion. Analysts were expecting EPS of $0.97 and revenues of $2.71 billion. A pro forma calculation accounting for the acquisition of W-H Energy Services, which was completed in late August, increased revenues to $3.07 billion.

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Posted on: October 28, 2008 – 8:18 am in Earnings, Oil & Gas,

Smith International Files To Raise Capital (SII)

Smith International, Inc. (NYSE: SII) has just filed a mixed securities shelf registration statement.  This will allow the oil and gas services company to sell debt, common stock, and units for an unspecified sum.

Shares of Smith International are down 1.4% at $65.86 late in the day.  Its 52-week trading range is $53.39 to $88.40 and its market cap is nearly $13.3 Billion.

As of June 30, 2008, its cash and equivalents was listed as $141.5 million and total assets were $6.64 Billion.  Total long-term and short-term liabilities were listed as $3.7 Billion.

Its use of proceeds is the standard "for general corporate purposes."

Jon C. Ogg
September 23, 2008

Posted on: September 23, 2008 – 2:28 pm in Oil & Gas, Secondary Offering,

Oil Services Better Insulated Than Most Energy Sub-Sectors (RIG, DVR, PDS, WFT, NOV, BJS, BHI, BAS, HAL, SLB, SII)

Oil_well_logo_2_2Oil Services are deemed by many market pundits as being more insulated than integrated oils, refiners, and other sub-sectors of the energy sector for oil and gas.  While these frequently move in-line with oil prices and with the sector, they are expected to have much more stable earnings than counterparts elsewhere in the sector.  Many of the oilfield services shares are down nearly 20% or more along with a major drop in oil prices. Transocean’s shares are holding at less than 1% down from 52-week highs, probably on the strength of the company’s bookings.

Transocean Inc. (NYSE: RIG) has given back nearly one-quarter of its value from its highs.  The worst performer among the larger players was CalDive (NYSE:DVR), down 43% from its 52-week high. Precision Drilling Trust (NYSE:PDS) is down about 30%, Weatherford (NYSE:WFT) is off about 27%, and National Oilwell Varco (NYSE:NOV) and BJ Services (NYSE:BJS) are down about 25%. A host of others are off around 20%: Baker Hughes (NYSE:BHI) at 22%; Basic Services (NYSE:BAS) at 21%; Halliburton (NYSE:HAL) at 20%; and Schlumberger (NYSE:SLB) and Smith International (NYSE:SII) are off about 19%.

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Posted on: August 20, 2008 – 11:17 am in Oil & Gas, , , , , , , , , , ,

Trouble Brewing in Oil Patch Merger? (SII, WHQ)

On June 3, 2008, Smith International (NYSE:SII) and W-H Energy Services (NYSE:WHQ) entered into a definitive merger agreement that would have Smith paying $56.10 in cash and 0.48 common share for each W-H share outstanding. At the time, the transaction valued each W-H share at $93.55, for a total value of about $3.2 billion. Analysts looked on the deal as a good match.

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Posted on: August 8, 2008 – 9:35 am in Mergers and Buy Outs, Oil & Gas, ,

Oil Patch Results Seeing Very Mixed Reviews (SU, EPD, ECA, SII)

Before today’s opening bell, four players in the oil patch released their second quarter numbers.

Suncor (NYSE:SU), Enterprise Products Partners (NYSE:EPD), EnCana (NYSE:ECA), and Smith International (NYSE:SII) all posted good numbers, but the outlook with the recent fall in prices is not so clear.  The next trend in prices of those stocks is also becoming unclear.

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Posted on: July 24, 2008 – 11:35 am in Earnings, Oil & Gas, , , ,

Upgrades & Downgrades in Oil & Gas (BHI, SII, HAL, NOV, SLB, WFT, BJS, SE, TTES, NBF)

These are some of the top analyst calls in oil and gas stocks we have seen in the early hours of trading this Tuesday morning.

Citigroup picked up new coverage on many stocks today.  Its new HOLD rated positions are as follows: Baker Hughes (NYSE: BHI) and Smith Intl (NYSE: SII).  Its new BUY rated stocks are as follows:  Halliburton (NYSE: HAL), National Oilwell Varco (NYSE: NOV), and Schlumberger (NYSE: SLB).  Citi also made two downgrades as both Weatherford (NYSE: WFT) and BJ Services (NYSE: BJS) were downgrades to HOLD from BUY ratings.

UBS has also made a select call on Spectra Energy (NYSE: SE) as it was started as a BUY rating.

Jefferies started coverage on T-3 Energy Services Inc. (NASDAQ: TTES) as a BUY rated stock. Jefferies also downgraded Nova Biosource Fuels (AMEX: NBF) to HOLD from BUY.

Jon C. Ogg
July 1, 2008

Posted on: July 1, 2008 – 7:38 am in Analyst Calls, Oil & Gas, , , , , , , , , ,

Top 10 Pre-Market Analyst Calls (BVF, CERN, GIGM, IRBT, MHS, MDP, SII, STLD, STI, TRI)

These are not all of the analyst calls, but these are ten of the calls affecting shares this Wednesday morning:

  • Biovail (NYSE: BVF) cut to Sector Perform at CIBC.
  • Cerner (NASDAQ: CERN) raised to Buy at Jefferies.
  • GigaMedia (NASDAQ: GIGM) started as Nuy at Brean Murray.
  • iRobot (NASDAQ: IRBT) raised to Buy at Kaufman.
  • Medco Health (NYSE: MHS) raised to Outperform at Oppenheimer.
  • Meredith (NYSE: MDP) cut to Hold at Citigroup.
  • Smith International (NYSE: SII) raised to Overweight at JPMorgan; also cut to Perform at Oppenheimer.
  • Steel Dynamics (NASDAQ: STLD) cut to Hold at Citigroup.
  • SunTrust Banks (NYSE: STI) raised to Market Perform at KBW.
  • Triad Hospitals (NYSE: TRI) started as Overweight at JPMorgan.

Jon C. Ogg
April 23, 2008

Posted on: April 23, 2008 – 6:49 am in Analyst Calls, , , , , , , , , ,

More Bad News from the Oil Patch (BHI, BJS, SII)

Three more oil field services companies reported earnings today, and there isn’t much good news in any of the announcements. Baker Hughes (NYSE:BHI) reported EPS of $1.27, which includes a one-time gain of $0.06/share, on revenue of $2.67 billion. First Call estimates were EPS of $1.20 on revenue of $2.69. In pre-market trading this morning, the stock has been off more than $1.00.

BJ Services (NYSE:BJS) reported EPS of $0.43 on revenue of $1.28 billion, missing First Call estimates of $0.55/share and revenue of $1.26 billion. The stock is being punished, down nearly $5.00 in pre-open trading.

Smith International (NYSE:SII) matched First Call estimates exactly, reporting EPS of $0.87 on revenue of $2.37 billion. SII closed at $78.01 yesterday, near its 52-week high, and there’s been no pre-open trading yet today. But, it’s hard to see how SII can avoid the sector meltdown.

Combined with yesterday’s announcements, the market for oil field services stocks is definitely downbeat. EPS and revenue growth estimates are modest for the whole sector, about 4%-5% for 2008. North American growth is expected to pick up somewhat, but mostly in the Canadian oil sands. Pricing pressure is also expected to continue in North America.

Every company is looking to grow its international business, but it’s hard to see how any single company comes up the big winner in that scenario. The Saudis are not expanding exploration or production, Russian oil production is actually falling, West Africa is fraught with danger, and even the new discoveries offshore Brazil won’t be in play for some time.

Tough pricing competition and anticipated lower levels of E&P by the majors point to lower expectations for the sector for the remainder of 2008.

Paul Ausick

Posted on: April 22, 2008 – 8:37 am in Earnings, , ,

Oil Services Earnings, Round Two (BHI, BJS, SII)

We have already seen some of the larger oil services companies report earnings between Monday and Friday, so far with little cheers today.  On Tuesday, we’ll get to see earnings report from additional players like Baker Hughes Inc. (NYSE: BHI), BJ Services Company (NYSE: BJS), and Smith International Inc. (NYSE: SII).  As of the last available data, these earnings all look set for Tuesday, April 22, in the pre-market hours.

Tuesday morning we’ll get to see earnings out of Baker Hughes Inc. (NYSE: BHI). The estimates for the oil services company from First Call are $1.20 EPS on $2.69 billion in revenues.  Next quarter estimates are $1.25 EPS on $2.78 billion in revenues. Estimates for fiscal Dec-2008 are $5.27 EPS on $11.42 billion in revenues.  Analysts have an average price target of $88.00, and Baker Hughes’ 52-week trading range is $62.65 to $100.29.

Tuesday morning we’ll get to see earnings out of BJ Services Company (NYSE: BJS). The estimates for the oil services company from First Call are $0.55 EPS on $1.30 billion in revenues.  Next quarter estimates are $0.50 EPS on $1.26 billion in revenues. Estimates for fiscal Sept-2008 are $2.23 EPS on $5.18 billion in revenues.  Analysts have an average price target of $30.00, and BJ Services Company’s 52-week trading range is $19.30 to $33.29.

Tuesday morning we’ll get to see earnings out of Smith International Inc. (NYSE: SII). The estimates for the oil services company from First Call are $0.87 EPS on $2.37 billion in revenues.  Next quarter estimates are $0.89 EPS on $2.38 billion in revenues. Estimates for fiscal Dec-2008 are $3.76 EPS on $9.88 billion in revenues.  Analysts have an average price target of $73.00, and Smith International’s 52-week trading range is $49.51 to $77.60.

Jon C. Ogg
April 21, 2008

Posted on: April 21, 2008 – 12:37 pm in Uncategorized, , ,

Goldman Sachs Changes Oil Services Ratings (HAL, WFT, SII, SLB, BHI)

Goldman Sachs has made a change in its oil services sector expectation this morning: 

It has raised Halliburton (NYSE: HAL) to Buy from Neutral and has raised 2008 EPS estimates by about 2.5% and raised 2009 EPS estimates by almost 2%.  This has been some time now, but Halliburton was Jim Cramer’s #3 Value Pick for 2007.

Weatherford International Ltd. (NYSE: WFT) was downgraded from Buy to Neutral, and Weatherford’s EPS estimates for 2008 and 2009 have been lowered slightly.

Estimates were also raised for Smith (NYSE: SII), Schlumberger (NYSE: SLB), Baker Hughes (NYSE: BHI).

Shares of Halliburton are indicated up over 1.5% at $42.85 in pre-market trading.

Jon C. Ogg
April 10, 2008

Jon Ogg produces the Special Situation Investing Newsletter.  He can be reached at jonogg@247wallst.com and he does not own securities in the companies he covers.

Posted on: April 10, 2008 – 7:37 am in Analyst Calls, Oil & Gas, , , , ,

Goldman Sachs on Canadian Oil Drilling (BJS, HAL, WFT, CAM, SII, FTI)

Goldman Sachs issued its first of a 3-part conference call covering the Canadian market, and it noted that the stimulation outlook is improving.  Its preference in the first of three notes is for oil service stocks with a higher exposure to gas in the near-term.  It favors BJ Services (NYSE: BJS), Halliburton (NYSE: HAL), and Weatherford (NYSE: WFT) over more oil-dominant related names like Cameron International Corporation (NYSE: CAM), Smith International Inc. (NYSE: SII), and FMC Technologies, Inc. (NYSE: FTI).

Most of the upside here is due to a limited new drilling activity in North America in the second half of 2008 and into 2009, which is combined with significantly higher natural gas prices.  It also notes that oil drillers will be dependent upon new rig additions.

Jon C. Ogg
March 18, 2008

Posted on: March 18, 2008 – 6:57 am in Analyst Calls, Oil & Gas, , , , , ,

Top 10 Pre-Market Analyst Calls (AIG, ANDE, BHI, PNM, SLB, SII, TWX, UL, WFT, WINN)

These are the top ten analyst calls that 247WallSt.com is focusing on in pre-market trading this Tuesday morning:

  • AIG (NYSE: AIG) downgraded to Equal Weight at Lehman.
  • Andersons (NASDAQ: ANDE) downgraded to Neutral from Buy at Banc of America.
  • Baker Hughes (NYSE: BHI) downgraded to Neutral from Buy at UBS.
  • PNM Resources (NYSE: PNM) downgraded to Equal Weight at Lehman and also downgraded to Hold from Buy at Citigroup.
  • Schlumberger (NYSE: SLB) raised to Outperform at Bear Stearns.
  • Smith International (NYSE: SII) downgraded to Neutral from Buy at UBS.
  • Time Warner (NYSE: TWX) raised to Buy from Neutral at UBS.
  • Unilever (NYSE: UL) downgraded to Hold from Buy at Citigroup.
  • Weatherford (NYSE: WFT) raised to Buy from Neutral at UBS.
  • Winn Dixie (NASDAQ: WINN) downgraded to Market Perform at FBR.

Jon C. Ogg
February 12, 2008

Posted on: February 12, 2008 – 7:27 am in Analyst Calls, , , , , , , , , ,