WRAPUP 2-Oil services results beat Street, margins pressed

* Cameron beats estimates, say Q3 orders exceed revenue

* Rowan beats, says demand for jackups, land rigs bottomed

* Parker Drilling sees slow improvement in overall outlook

* Cameron shares up 1.5 pct, Rowan up 5 pct; Parker drops (Adds analyst and executive comment, bylines; updates shares)

By Hezron Selvi and Braden Reddall

BANGALORE/SAN FRANCISCO, Nov 3 (Reuters) - Oilfield service firms Cameron International Corp (CAM.N) and Rowan Cos Inc (RDC.N) posted estimate-topping profits, as higher energy prices sparked an uptick in drilling, but they could not shake the weight bearing down on margins.

Slack in the industry continues to put downward pressure on pricing because the capacity that kept twice as many rigs running globally just over a year ago has not gone away.

Cameron, ranked eighth in the sector by market capitalization, said one reason it beat analysts' estimates in the third quarter was because an anticipated margin squeeze failed to materialize.

"We do expect to see margin slippage, but the magnitude and timing of the deterioration is somewhat uncertain," Chief Financial Officer Charles Sledge told analysts and investors on a conference call.

Nonetheless, Cameron raised its 2009 forecast for the second time in three months and said orders in the quarter topped revenue for the first time since the third quarter of 2008; its shares rose 1.5 percent. [ID:nN02453485].

Pritchard Capital Markets analyst Brian Uhlmer predicted the good results and better market conditions would push Cameron's shares closer to the valuation enjoyed by its closest peer, FMC Technologies Inc (FTI.N).

Rowan, a drilling rig contractor that beat analysts' average profit estimate by 2 cents per share in the quarter, said demand for its equipment has improved. [ID:nBNG516866]

"While excess rig supply has, and will likely continue to put pressure on dayrates, we believe global demand for jackups and land rigs bottomed during the third quarter," Chief Executive Matt Ralls said, noting more contracting activity in the North American land and jackup drilling markets.

The entire sector got a boost from a 1.4 percent rise in U.S. crude oil prices CLc1 on Tuesday, with the Philadelphia Stock Exchange oil service index up more than 2 percent.

The sector has seen revenue slump in the past year as the oil and gas producers it serves have cut spending on projects. But a recent oil price surge and hopes of an economic rebound lifting natural gas demand have prompted some new well development.

Unit Corp (UNT.N), a drilling services provider that is also involved in oil and gas exploration, said it spotted initial signs of increased drilling demand by the exploration and production companies. [ID:nBNG486811]

However, Parker Drilling Co (PKD.N) forecast a slow improvement in overall outlook, and warned that dayrates remain under pressure, tool rental rates are heavily discounted, and contract commitments are slow to develop. [ID:nBNG404832]

Allis-Chalmers Energy Inc ALY.N Chief Executive Micki Hidayatallah said there has been a slight rise in utilization in its oilfield services segment, but the domestic pricing environment remains very competitive. [ID:nBNG484851]

Allis-Chalmers shares dropped 8.7 percent, while Unit Corp and Parker were little changed on the New York Stock Exchange.

Shares of Cameron rose 1.4 percent to $37.96, while Rowan shares climbed 7.1 percent to $25.02. (Reporting by Hezron Selvi and Thyagaraju Adinarayan in Bangalore and Braden Reddall in San Francisco, with additional reporting by Matt Daily in New York; Editing by Pradeep Kurup and Gerald E. McCormick)