Earnings Preview For Cameron International Corporation (CAM)

Cameron International Corporation CAM is expected to announce its Q1 earnings report on Thursday, April 28, before the markets open. Analysts are predicting earnings per share to reach $0.57, up 11.8% on the previous year's level of $0.51. Within the last seven days, analysts have downgraded their earnings estimate by $0.01. Cameron International Corporation provides flow equipment products, systems and services to global oil, gas and process industries. The Houston-based company operates in three segments: Drilling & Production Systems, Process & Compression Systems and Valves & Measurement. The Drilling & Production Systems segment includes businesses, which provide systems and equipment used to control pressures and direct flows of oil and gas wells. The Valves & Measurement segment includes businesses, which provide valves and measurement systems used to control, direct and measure the flow of oil and gas as they are moved from individual wellheads through flow lines, gathering lines and transmission systems to refineries, petrochemical plants and industrial centers for processing. During the year ended December 31, 2010, the company completed the acquisition of Eagle Precision Products, a provider of well testing and flowback services. It is one of the Fortune 500 companies. The majority of rating agencies have a Buy or Strong Buy on Cameron's shares. Analysts seem to be optimistic on Cameron's Q1 performance. The Q1 revenues are expected to reach $1.62 billion, up 20.3% on the previous year's level. Earnings per share, on the other hand, is expected to be 11.8% higher than a year ago. The economic activity is expected to slow down in the rest of the year, however. Earnings per share is expected to grow 11.2% this year, while revenues should be up 7.2% on a yearly basis. Investors might be further encouraged by Cameron's ability to beat market expectations, as demonstrated in the last three quarterly earnings reports.