Forum Energy Technologies Reports Fourth Quarter 2019: A Dive into Earnings and Future Prospects

Posted on February 12, 2020 by Your Finance Insider

Fourth Quarter Highlights

Forum Energy Technologies, Inc. (NYSE: FET) has released its earnings report for the fourth quarter of 2019, and if you were looking for an earnings surprise, well, you might need to adjust your expectations. The company reported a revenue of $200 million, which is down $40 million from the previous quarter. If you?re wondering about the EPS consensus, it looks like they fell short of expectations, posting a net loss of $12 million or $(0.11) per diluted share. Not exactly the news investors were hoping for.

Breaking Down the Numbers

To put it in perspective, this fourth quarter loss stands in stark contrast to the third quarter?s staggering net loss of $533 million, or $(4.83) per diluted share. It's quite the rollercoaster ride, isn't it? However, if we exclude special items?which sounds like a fancy way to say "the stuff we don?t want to talk about"?the adjusted net loss was only $(0.09) per diluted share, compared to a positive adjusted net income of $0.02 per diluted share in Q3 2019.

What About Adjusted EBITDA?

Adjusted EBITDA came in at $11 million for the quarter, a figure that suggests Forum is still managing to generate some operational cash despite the revenue dip. Cash flow from operations was reported at $28 million, with free cash flow after capital expenditures reaching $26 million. It seems like Forum is still holding it together in terms of cash?at least for now.

Special Items: The Good, the Bad, and the Ugly

The earnings report also revealed some special items that are worth noting. The company recorded a pre-tax gain of $2 million from the disposition of a business, but this was offset by $4 million in charges related to discontinued products and an $8 million foreign exchange loss. So, while it?s nice to see a gain, the overall picture suggests quite a bit of turbulence in the operations.

Looking Ahead: What Does This Mean?

Forum?s total revenue for the full year 2019 was $957 million, reflecting ongoing challenges within the energy sector. As we look toward the future, the earnings forecast for Forum Energy Technologies raises a few eyebrows. With the industry still grappling with various headwinds and uncertainties, it?s going to be a tightrope walk for Forum and its peers. Investors should certainly keep an eye on the company?s ability to navigate these challenges as they go forward.