Weak market bites BJ Services' profit

cbs.marketwatch.com By CBS.MarketWatch.com Last Update: 2:20 PM ET Jan. 21, 2003

HOUSTON (CBS.MW) -- Shares of BJ Services fell Tuesday after the company said the weak market conditions that cut its first-quarter profit in half will likely continue into the second quarter.   CBS MARKETWATCH TOP NEWS Stocks sink as war jitters overshadow earnings Housing starts soar to 16-year high Airlines hit '03 lows as losses mount 3M beats by a penny and raises outlook Free! Sign up here to receive our Weekly Roundup e-Newsletter!

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Shares of the oilfield services company (BJS: news, chart, profile) fell by $1.07 to $30.98.

BJ posted a profit of $33.5 million, or 21 cents a share for the first quarter, compared to the average 22-cent-per-share estimate of analysts polled by Multex. A year ago, it earned $66.9 million, or 42 cents per share.

Revenue reached $473.1 million -- below market expectations of $489.3 million and last year's $510.1 million.

Chairman J.W. Stewart said BJ Services remains "optimistic about increased activity in the U.S. market," but expects that "activity will continue at present levels until late Spring.

As a result, Stewart said BJ Services would likely earn 22 cents to 25 cents per share for the second quarter and $1.05 to $1.15 per share for the full-year 2003.

A Thomson First Call poll of analysts pegged expectations at 28 cents and $1.23 per share, respectively.

Tidewater Q3 matches target

Tidewater reported a third-quarter profit Tuesday that matched Wall Street's average target, but said market conditions will likely remain the same for the fourth quarter.

Tidewater shares fell 70 cents to $29.16.

The company (TDW: news, chart, profile) said third-quarter profit reached $23.6 million, or 42 cents per share, compared to $33.5 million, or 60 cents per share a year ago. The latest results were in-line with the 42-cent average of per-share profit estimate of analysts surveyed by Multex.

The company reported third-quarter revenue of $163.1 million, vs. $181.8 million in the year-ago quarter and a Wall Street target of $164.4 million.

During a conference call Tuesday morning, Chief Executive Dean Taylor said the company currently anticipates that conditions in the March quarter should be similar to that of the December quarter.

But given the uncertainty surrounding Iraq, Venezuela and situation in the Gulf of Mexico, there is "greater possibility of change, either up or down, than there was in the quarter just reported," he said.

Still, Taylor voiced confidence that "good times are coming."

Oil stocks ease on quarterly data

Oil stocks fell Tuesday as disappointing quarterly earnings and outlook from BJ Services fueled investors' concerns that upcoming earnings from major oil companies will be weak.

See Energy Stocks.

Crude awaits moves on Venezuela strike

Efforts to end Venezuela's eight-week strike intensified Tuesday, but with production from the world's fifth-largest oil supplier continuing at reduced levels, crude futures remained well above $30 a barrel.