Exterran Holdings Shares Jumped: What You Need to Know

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Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of oil and gas supplier Exterran Holdings (NYS: EXH) exploded higher today on positive earnings news, rising 19% as I'm writing.

So what: Revenue rose 12.6%, much higher than expected, to reach $704.5 million in the third quarter. Loss per share of $0.42 was a penny better than expected, including a $196 million goodwill impairment charge.

Now what: The market may be jumping for joy today, but I'm not seeing a lot to be excited about. Revenue was much higher than expected, but the company lost money, indicating that margins aren't expanding. Analysts are also expecting a big loss for 2012, so the financials aren't exactly improving by leaps and bounds. I'm going to stay away from this pop today and stick to profitable companies in the oil and gas industry.

Interested in more info on Exterran Holdings? Add it to your watchlist byclicking here.

At the time this article was published Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.  

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