Tenaris Earnings: Firm Beats Our EPS Estimate, Sets Itself Up for Positive End to 2024

We maintain our $37 per share fair value estimate for no-moat Tenaris' ADR shares, but decrease our fair value estimate to EUR 17 per share from EUR 20, due to exchange rate movements since our last update. Tenaris posted third-quarter earnings per share of $0.40 and net sales of $2.9 billion. The firm’s results were in line with our EPS estimate but missed our net sales estimate only slightly. Net sales, however, did drop 12% from last quarter’s $3.3 billion. Lower prices in the Americas and lower demand from decreased drilling activity in the United States, Mexico, and Saudi Arabia drove the dip in net sales quarter over quarter. North and South America represent about two thirds of Tenaris’ business.