This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Key Energy Services Expects Second Quarter 2012 Earnings From Continuing Operations Of $0.18 To $0.20 Per Diluted Share

HOUSTON, June 20, 2012 /PRNewswire/ -- Key Energy Services, Inc. (NYSE: KEG) expects results for its second quarter 2012 to be below prior expectations with consolidated revenue from continuing operations now forecasted to increase 5% to 7% compared to the first quarter 2012. Key also expects second quarter 2012 earnings from continuing operations to be $0.18 to $0.20 per diluted share. Key's prior second quarter guidance anticipated sequential consolidated revenue growth of 10% to 15% and earnings from continuing operations of $0.31 to $0.33 per diluted share.

Second quarter revenue in Key's U.S. operations is expected to increase 2% to 4% sequentially, with approximately 45% of the growth coming from our rig service business. Outside of the U.S., Key's second quarter revenue is expected to increase approximately 35% sequentially, largely on growth in Mexico and consistent with prior expectations. 

Key's Chairman, President and Chief Executive Officer, Dick Alario, elaborated, "Our outlook for the remainder of 2012 is for international results to be in line with earlier expectations, with full year international revenue up approximately 75% from 2011. However, we now expect full year U.S. revenue to increase in the range of 15% compared to 2011, down from our earlier expectations of a 25% increase. We now project our 2012 U.S. operating income margins to decline by approximately 200 basis points from 2011, and we reduced our 2012 capital spending budget by $100 million to $350 million.

"Our revised forecast assumes lower activity growth than we previously estimated in the liquid shale markets throughout 2012 and further activity and pricing declines in the natural gas markets, which are impacting our fluid management, coiled tubing, and rental service businesses. That said, we continue to project that our U.S. rig service business will produce results in line with our previous estimates."

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $94.50 -0.54%
FB $98.30 -1.50%
GOOG $674.05 -1.30%
TSLA $147.05 -0.64%
YHOO $26.68 -1.40%


Chart of I:DJI
DOW 15,932.51 -94.54 -0.59%
S&P 500 1,841.28 -12.16 -0.66%
NASDAQ 4,240.89 -42.8630 -1.00%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs