Basic Energy Services 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 Basic Energy Services (NYS: BAS) fell 10% today after the company released earnings.
So what: Revenue in the third quarter jumped 17% to $346 million and earnings per share went from a loss a year ago to a profit of $0.64 per share this year. Still, analysts were expecting revenue to be $350 million and earnings per share of $0.66, so shares were punished today.
Now what: This was an earnings miss, which is never good, but it isn't like Basic Energy Services missed by a wide margin. The company is still in the attractive space of oil and gas well services in a growing U.S. market. With shares trading at just six times next year's expected earnings, I see this dip as a nice buying opportunity for investors.
Interested in more info on Basic Energy Services? 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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