EmailLufkin Industries (LUFK $53.56 -5.77) reported second quarter earnings of $0.66 per share, excluding the $0.09 per diluted share impact of expenses related to prior-period pension re-measurement, class action settlement costs and acquisition related expenses, $0.16 worse than the consensus of $0.82, while revenues rose 34.7% year/year to $305.6 mln vs the $307.21 mln consensus. The company issued downside guidance for the third quarter with EPS of $0.70-0.80 vs. $1.09 Capital IQ Consensus Estimate; sees Q3 revs of $330-340 mln vs. $341.84 mln Capital IQ Consensus Estimate. The company issued downside guidance for fiscal year 2012 with EPS of $3.00-3.20 versus the $3.72 consensus and revenues of $1.25-1.27 billion versus the $1.28 billion consensus. With regard to Q2, co states: "Low natural gas prices are also continuing to hinder the performance of ILS and PHL, which supply plunger lift, gas lift and hydraulic lift equipment. We have been transitioning our operations and service focus for these products away from dry gas plays towards liquids-rich areas, but we've been unable to fully offset the impact of the drop in gas production and coalbed methane dewatering activities by our customers in specific regions."
Adding color to its outlook, co states: "While we expect the pace of orders to remain brisk, we may see third quarter bookings decline sequentially, because several customers placed large orders, covering multiple quarter requirements during the second quarter."
