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Superior Energy’s 1Q17 Earnings: What the Analysts Expect

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Superior Energy’s earnings

For 1Q17, Wall Street analysts expect Superior Energy Services (SPN) to report an adjusted loss per share of $0.60, which implies an expectation of an 18% improvement, as compared to SPN’s 4Q16 adjusted loss of $0.74 per share. SPN is expected to release its 1Q17 financial results on April 25.

Higher drilling activity in US unconventional shales and higher well construction product sales in North America are expected to have improved SPN’s 1Q17 earnings. However, higher rig activation costs and slowdowns in some of the company’s international operations may have kept earnings in check.

Notably, from 4Q15 to 4Q16, SPN’s adjusted net loss per share deteriorated further, but as compared to 3Q16, its 4Q16 adjusted net loss remained nearly unchanged.

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Earnings versus estimates

In 4Q16, Superior Energy’s adjusted EPS beat the analysts’ consensus EPS estimate. On an average, SPN’s adjusted EPS exceeded consensus EPS by ~10% in the past 13 quarters.

Superior Energy makes up 0.01% of the iShares Russell 3000 ETF (IWV), which consists of 3,000 large companies in the US and tracks the Russell 3000 Index (RUA-INDEX). The energy sector makes up 6.1% of IWV. Notably, RUA-INDEX has risen 15% in the past year.

Analysts’ estimates for SPN’s peers

By comparison, analysts expect Helmerich & Payne’s (HP) 1Q17 adjusted earnings to improve marginally, as compared to its adjusted 4Q16 earnings. Weatherford International’s (WFT) 1Q17 adjusted earnings are expected to improve to -$0.29, as compared to -$0.32 in 4Q16.

Analysts expect Oil States International’s (OIS) 1Q17 adjusted EPS to deteriorate to -$0.27 from -$0.20 in 4Q16. You can read more about Wall Street analysts’ estimates for oilfield services companies in Market Realist’s series Oilfield Services Stocks: Wall Street’s Best and Worst for 1Q17.

Continue to the next part for a discussion of SPN’s value drivers in 4Q16.

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