Complete Production Services, Inc. (CPX) is fresh off the heels of an awesome 567% earnings surprise that sent shares blasting past a key level of resistance to a new multi-year high. Estimates jumped higher on the news, with the next year now projecting bullish 81% growth.
Complete Production Services, Inc. provides specialized services and products to develop hydrocarbon reserves for oil and gas companies in North America and southeast Asia. The company was founded in 2001 and has a market cap of $1.8 billion.
Energy companies have been hot over the last year as a stronger global economy has pressured supplies. That dynamic has enabled Complete Production Services to score an average earnings surprise of 170% over the last four quarters, last on display with better than expected Q2 results from July 21.
Revenue for the period was up 51% from last year to $360 million. Earnings also came in strong at 20 cents, well ahead of the Zacks Consensus Estimate calling for 3 cents, lifting the company’s average earnings surprise over the last four quarters to 170%.
The company benefited from higher levels of on-shore exploration and production in North America related to a number of a resource rich plays in crude and gas.
That dynamic drove the company’s larger segment, Production and Services to a solid 17% gain in revenue from just last quarter to $310.5 million.
Its smaller segment, Drilling Services, was up 15% from last year to $40 million on stronger pricing and utilization rates.
Balance Sheet Improving
The solid quarter enabled the company to strengthen its balance sheet, with cash and equivalents up more than four times from last year to $105 million and its total debt falling by $127 million to $650 million.
Estimates have been screaming higher since the good quarter hit the Street, with the current year up a ridiculous 64 cents in the last month to 77 cents. The next-year estimate is up 69 cents in the same time to $1.40, a bullish 81% growth projection.
But in spite of the nice estimate revisions, CPX does look a bit pricey, trading with a forward P/E of 25X against the industry average of 21X.
CPX surged on the good quarter, jumping past a key level of resistance to hit a new multi-year high. Take a look below.