Why Parker Drilling's Shares Popped 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 contractor Parker Drilling jumped as much as 19% today after announcing earnings.
So what: Third-quarter revenue jumped 44% from a year ago, to $237.8 million, and adjusted net income dropped 16%, to $14.5 million, or $0.12 per share. Analysts were only expecting $231.4 million in revenue and $0.09 per share in earnings, which is why shares jumped.
Now what: The inland U.S. market continues to be weak, but Parker's management sees improvement in offshore and international markets. This is a theme we've seen from across the industry as new oilfields will drive growth in these markets. I like the company's prospects, and generally prefer service providers, because they don't have the same risk as oil explorers. That's why I think shares still have room to run higher.
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The article Why Parker Drilling's Shares Popped Today originally appeared on Fool.com.Fool contributor Travis Hoium has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. 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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