Why Key Energy Services' Shares Popped
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 energy service company Key Energy Services (NYS: KEG) rose 13% today after the company reported earnings.
So what: Revenue rose an impressive 24% to $516 million, but fell short of the $522 million number analysts expected. Net income was $29 million, or $0.19 per share. Earnings from continuing operations were $0.21, $0.02 ahead of estimates.
Now what: The numbers were fairly good but net income did fall 19% in the quarter despite the rise in revenue. Management is expecting a 20%-25% increase in operating income next quarter so the numbers should get better from here. With shares trading at 10 times trailing earnings I think the stock can still move higher, but I would like to see margins improve before pushing all-in on the stock.
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The article Why Key Energy Services' Shares Popped originally appeared on Fool.com.
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