Rating Change #5
Exterran Holdings Inc
has been upgraded by TheStreet Ratings from sell to hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, compelling growth in net income and revenue growth. However, as a counter to these strengths, we find that the company's profit margins have been poor overall.
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Highlights from the ratings report include:
- Powered by its strong earnings growth of 101.16% and other important driving factors, this stock has surged by 132.02% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Energy Equipment & Services industry. The net income increased by 152.5% when compared to the same quarter one year prior, rising from -$215.97 million to $113.37 million.
- EXH's revenue growth trails the industry average of 19.2%. Since the same quarter one year prior, revenues slightly increased by 2.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
- EXTERRAN HOLDINGS INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, EXTERRAN HOLDINGS INC reported poor results of -$5.28 versus -$2.37 in the prior year. This year, the market expects an improvement in earnings (-$1.07 versus -$5.28).
- The gross profit margin for EXTERRAN HOLDINGS INC is currently lower than what is desirable, coming in at 29.30%. Regardless of EXH's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, EXH's net profit margin of 15.80% compares favorably to the industry average.
Exterran Holdings, Inc., together with its subsidiaries, provides operations, maintenance, service, and equipment for oil and natural gas production, processing, and transportation applications. The company has a P/E ratio of -3.3, below the S&P 500 P/E ratio of 17.7. Exterran has a market cap of $1.3 billion and is part of the basic materials sector and energy industry. Shares are up 134.1% year to date as of the close of trading on Friday.
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