Why Nabors Industries Ltd.'s Shares Jumped Today
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 drilling-services company Nabors Industries jumped as much as 14% today after reporting earnings.
So what: Fourth-quarter revenue was up slightly to $1.61 billion, topping estimates of $1.55 billion from Wall Street. Net income from continuing operations was down slightly to $128.5 million, or $0.42 per share, but was well ahead of the $0.20 estimate.
Now what: The bottom line was helped by $0.16 per share in tax benefits, but even after taking that out, the results were impressive. Management also expects results to pick up in 2014, starting in the second quarter. Both international and domestic businesses look strong given rising commodity prices. Considering that shares trade at only 14 times forward estimates, which were low last quarter, I think there's room to run, especially if commodity prices remain high.
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The article Why Nabors Industries Ltd.'s Shares Jumped Today originally appeared on Fool.com.
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