Apergy reports Q3 adjusted EPS 27c, consensus 32c
Reports Q3 revenue $278.4M, consensus $307.25M. "As the quarter progressed, U.S. onshore activity deteriorated more than anticipated, resulting in lower than expected operational results in Q3," said CEO Sivasankaran Somasundaram. "While both of our segments were impacted by slowing U.S. activity, Drilling Technologies experienced a steeper than expected decline driven by the sharp decrease in the U.S. rig count, as well as the related destocking of polycrystalline diamond cutter inventories by our customers. The aggressive destocking by our drill bit customers had an estimated impact of $12M on Drilling Technologies Q3 revenue. International markets continue to remain positive and our revenues outside of North America were up 13% in the quarter compared to the year ago period. Although total company revenue declined, our proactive cost management actions and continuous productivity initiatives enabled us to post a strong adjusted EBITDA margin performance of 24% in the quarter reflecting our margin resiliency".