Boston, MA 10/29/2013 (wallstreetpr) – Cameron International Corporation (NYSE:CAM) disappointing Q3 performance has begun to have repercussions on the company stocks in the recent days.
One of the leading Oil and Gas equipment designer and manufacturer CAM, is a known name for installation of subsea systems for most oil and gas production companies. Despite, low customer satisfaction CAM has stood its own in this hugely challenging industry. It continues to bring value to its assets through joint ventures – OneSubsea with Schlumberger.
On October 24, 2013, the third quarter results for the corporation were announced- missing estimates for revenue and earnings.
The company earned revenue of $2.5 billion missing by $0.1 billion. The net profit for CAM fell by 15% translation to $189 million. An after-tax of $8.6 million was related to OneSubsea venture with Schlumberger. It also earned a Year on Year cost hike of 5%.
The total revenue for the company stood at $2.5 billion which was 13% higher. There was an increase in the number of orders CAM received as well, moving from $3 billion from previous higher of $2.3 billion. Additionally, there was a $11.2 billion backlog towards the end of the quarter.
CAM has also issued its fourth quarter guidance. The EPS is pegged at $0.95 to $1.00 while analysts are looking at $1.13.
Most analyst firms have already announced a downgrade for the company. Most analyst opine that , in the immediate investment terms, CAM has definitely lost its lustre. However, on long term investments CAM would show promising results. The expected turn around for the company is pegged at 2 to 3 years.
Deutsche Bank has been quick to move in CAM shares, moving in higher price targets of $73 over $66.
According to Deutsche Bank, CAM future performance will be good considering its JVs in deepwater as well as Subsea play.