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 Exterran Holdings (NYS: EXH) jumped 18% today after the company released earnings and announced a sale of assets.

So what: For the fourth quarter of 2011, Exterran Holdings reported a net loss of $66.6 million, or $1.06 per share, on revenue of $702.9 million. The company also said it would be selling compression and processing assets to Exterran Partners (NAS: EXLP) for $184 million.

Now what: The fourth-quarter loss may be an improvement and better than analysts estimated, but I'm having a hard time getting excited about it. Analysts are still expecting a $1.00 loss per share in 2012, and with the energy business going gangbusters I'm not buying into a company that can't make a profit in this environment. Once Exterran swings to a profit, I may take a look again, but for now I will stick to energy stocks that aren't losing money and sitting on a pile of debt.

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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