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Smith International (SII) is expected to report Q3 earnings on Thursday, October 29 before the market open with a conference call scheduled for 11am ET.

Guidance

Analysts are looking for EPS of 15c on revenue of $1.91B. The consensus range is 11c-21c for EPS, and $1.81B-$1.99B for revenue, according to First Call. Positive drivers for the company's Q3 results include dominance in drilling fluids, drill bit technology and strong market share in deep-water. But the company's U.S. land and shallow U.S. Gulf of Mexico operations were most likely adversely affected by weak natural gas prices.

Analyst Views

On October 1, Bernstein said that oil services multiples will likely expand further. The firm predicts that commodity prices will soon increase to a point above marginal cost causing a cyclical rebound in upstream capital expenditures. The firm initiated Smith International (SII), Hemerich & Payne (HP), and Pride International (PDE) with Outperform ratings.

Source: Earnings Preview: Smith International