Cameron International Corporation(NYSE:CAM) cuts down its yearly estimates over increase in “Other” charges.

Posted On 29 Jul 2013

Tag: Cameron International Corporation(NYSE:CAM), NYSE:CAM

Denver, CO, 07/29/2013 (Avauncer.com) – Cameron International Corporation(NYSE:CAM) recently reported its second quarter earnings. The earnings showed a positive sign beating markets expectation but the company lost on shareholders’ sentiments by missing the revenue targets. Revenue surged 11% to $2.29 billion, but couldn’t meet analyst’s estimate of $2.35 billion.

Cameron is a producer of systems and services for oil and gas processing. They manufacture systems divided into three segments, namely Drilling and Production System (DPS), Valves and Measurement (V&M) and Process and Compression System (PCS). DPS is involved in system production for helping control pressure and direct flow of oil in oil wells, V&M produces control systems to direct oil flow from wells to refineries and plants and PCS products and compression units separates the impurities from the oil and gases.

Segment wise, the company faired in the DPS department while facing disappointment in booking revenues in the other two. The revenue in DPS rose 24% while showing a decline of 4.3% in V&M and 7.3% in PCS. The higher sales was in DPs is said to be contributed from the strength in Subsea business. V&M showed decline due to languid movement in the infrastructure activity in the world.

The operating margins of the company declined 1.9% to 9% this quarter. The reductions in earnings were attributed to the high joint-venture formation costs, acquisition integration costs and other miscellaneous items. Thus in spite the revenues showing an upward trend, the other costs are weighing it down. The operating profits are suffering. The quarter earnings negativity further reduces the year end estimates for the company. The share price expectation was reduced from a band of $3.5-$3.7 to $3.4-$3.55.

The stock closed at $57.18 as on July 26, 2013. The stock traded at a record volume of 9.77 million, where 30 day average volume is 1.76 million.

About the Author

David H. Steinberg grew up in West Hartford, Connecticut, entered Yale at age 16, and earned his law degree from Duke University, where he served as editor-in-chief of the law review. After four years of entertainment law in Atlanta and New York, he abandoned his legal career to attend U.S.C.’s Peter Stark Producing Program. Steinberg broke out as a writer in 1999 with his teen comedy SLACKERS that ignited a bidding war for the script. The movie starred Devon Sawa, Jason Schwartzman, and model Jaime King and became an instant cult classic.