Cameron Falls on Forecast That's Below Expectations
Cameron International Corp. (CAM), the second-largest U.S. maker of oilfield equipment, fell after forecasting profits that fell short of expectations.
Cameron fell 1.2 percent to $50.64 at the close in New York. Earlier the shares fell as much as 7.1 percent, the biggest intraday decline since June 21.
The company expects to report adjusted fourth-quarter earnings of 95 cents to 97 cents a share, according to a statement today. Analysts were expecting $1.08 a share, the average of 27 estimates compiled by Bloomberg. The company said its operating profit margin next year will be from 17 percent to 18 percent.
Analysts’ expectations for next year are about 10 percent too high, said James Wicklund, an analyst at Credit Suisse Group AG in Dallas, who rates the shares a buy and owns none.
Cameron is “taking the hit they deserve,” Wicklund said today in a telephone interview.
National Oilwell Varco Inc. (NOV) is the biggest supplier of oilfield equipment.
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