Update: GulfMark Offshore Q3 Earnings - The Management Sees Cycle Bottom Within Several Quarters
Martin Vlcek • Wed, Oct. 22
- GulfMark Offshore reported disappointing Q3 numbers and lowered its 2015 guidance on sales by 13% versus previous consensus. However, the management sees bottom in the current cycle within several quarters.
- The industry weakness continues and GLF investment requires patience, as I warned in my thesis. The stock seems to be bottoming as it quickly recouped losses after the earnings release.
- I reiterate my buy recommendation but adjust my target price down to $42 per share on weaker 2015 outlook. Thanks to the lower price, GLF offers higher upside of ~40%.