Heckmann Shares Popped: What You Need to Know

Before you go, we thought you'd like these...
Before you go close icon

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 energy services company Heckmann (NYS: HEK) were getting cheers from investors today, rising as much as 10% in intraday trading after the company reported third-quarter results.

So what: "Our revenues, adjusted EBITDA and net income performance reflect our added capabilities to generate internal growth." So said CEO Richard Heckmann of the company's quarterly performance. And the numbers seem to confirm Heckmann's bullish view, as revenue soared to $47.8 million from just $1.9 million last year and also topped analysts' estimate of $45.3 million. Earnings per share came in at $0.02, reversing a loss of $0.02 last year and topping the $0.01-per-share loss that analysts were expecting.

Now what: Heckmann's growth from last year was spectacular, as the company ramped up its core water-solutions business. Looking ahead, analysts see big growth continuing, with per-share profit of $0.04 in 2011 more than quadrupling to $0.18 in 2012. However, investor expectations also seem to be high as well, as today's stock price of $6.44 is nearly 36 times expected 2012 earnings.

Want to keep up to date on Heckmann?Add it to your watchlist.

At the time this article was published The Motley Fool owns shares of Heckmann. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.Fool contributorMatt Koppenhefferhas no financial interest in any of the companies mentioned. You can check out what Matt is keeping an eye on by visiting hisCAPS portfolio, or you can follow Matt on Twitter,@KoppTheFool, or onFacebook. The Fool'sdisclosure policyprefers dividends over a sharp stick in the eye.

Copyright © 1995 - 2011 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners