Parker Drilling Shares Popped: 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 Parker Drilling (NYS: PKD) jumped 10% today after the company released earnings.
So what: During the third quarter, revenue rose 2.7% to $176.6 million but fell short of analysts estimates of $182.7 million. But that's no matter when earnings per share reached $0.18, a full $0.05 ahead of estimates.
Now what: As shale drilling demand expands rapidly, Parker Drilling is selling more drill pipe, and demand for shallow water rigs is improving. These trends should continue, and with shares trading at just nine times forward earnings estimates, Parker looks like a good value in the industry. I think shares are attractive, and I'll back that up by giving Parker Drilling a green thumb on My CAPS page, which you can see here.
Interested in more info on Parker Drilling? 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.
Copyright © 1995 - 2011 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.