Hornbeck Offshore Services Shares Jumped: 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 marine services provider Hornbeck Offshore Services (NYS: HOS) jumped 10% today after the company released earnings.
So what: Revenue rose 26% to $122.7 million on strong demand for drilling around the world. Earnings per share were $0.49, crushing the $0.20 per share analysts had expected. The higher profit was helped by a higher utilization rate of the company's equipment.
Now what: Hornbeck is riding a wave of new drilling not only in the Gulf of Mexico, but in locations like Brazil and Angola. The company has quickly turned around a business that lost money the last three quarters and the trend suggests that will only continue. The recent run-up in shares makes me a little cautious, but I like the offshore drilling space that Hornbeck is a part of, and I think the industry will continue to grow.
Interested in more info on Hornbeck Offshore? 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.