Earnings for CGG Veritas (NYSE:CGV) will continue to be pressured, according to Jefferies, based mostly on excess capacity in the industry at this time.
Jefferies said, "We expect earnings will continue to face stiff headwinds during the next year primarily due to excess industry-wide marine capacity, recently exacerbated by competitors' newbuild plans. Also, delays in GOM activity and timing of the next lease sale clouds the outlook."
EPS estimates were lowered for 2011 from $0.32 to -0.14 and for 2012 from $0.84 to $0.79.
Jefferies reiterates their "Hold" rating on CGG, which was trading at $24.08, losing $1.09, or 4.33 percent at 1:56 PM EST. Jefferies has a price target on them of $20.
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