Exterran Holdings Shares Plunged: What You Need to Know
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) dropped as far as 21.3% on very heavy volume.
So what: This morning's second-quarter report failed to impress the Street thanks to a disappointingly large net loss in spite of great sales. Making matters worse, CEO Ernie Danner decided to announce his departure from Exterran and sister company Exterran Partners (NAS: EXLP) . And of course, all of this took place on a terrible market day in general, and particularly so in Exterran's oil and gas sector.
Now what: In Danner's defense, he's taking the high road by stepping out after disappointing his investors for a number of quarters. The board is now looking for a suitable replacement, and Danner keeps a hand on the rudder until they find one. In spite of the man's misgivings, Exterran Holdings sports a perfect five-star CAPS rating, just like sector peers Global Industries (NAS: GLBL) and Complete Production Services (NYS: CPX) -- maybe Ernie could be convinced to stay after all?
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At the time this article was published Fool contributor Anders Bylund holds no position in any of the companies discussed here. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool is investors writing for investors.