This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Why Patterson-UTI Energy (PTEN) Soared on Thursday

NEW YORK (TheStreet) -- Patterson-UTI Energy (PTEN - Get Report) soared on Thursday after issuing fourth-quarter and full-year earnings above analyst projections.

By early afternoon, shares had driven 13.5% higher to $27.89, and 6.2 million shares had changed hands, nearly three times its three-month average daily trading volume.

The oil-drilling operation reported December-ended net income of 28 cents a share, 6 cents higher than analysts surveyed by Thomson Reuters had expected. Revenue of $659 million was 1% higher than a year earlier and broadly in line with expectations.

"During the fourth quarter, our average operating rig count in the United States increased to 183 rigs from 181 in the third quarter and our average operating rig count in Canada increased to nine from eight in the third quarter," said CEO Andy Hendricks in a statement.

Must Read: Why Lennar Corporation (LEN) Spiked on Thursday

For the full year, the Snyder, Texas-based business recorded per-share earnings of $1.19, 7 cents higher than consensus, and total sales of $2.72 billion, around $50 million more than expected.

The company declared a quarterly cash dividend of 10 cents a share to be paid on March 27 to shareholders of record at March 12.

"Our Board doubled the quarterly cash dividend in recognition that the Company's transformation has had a profound impact on our financial results. We embark on this higher payout to our shareholders based on our belief that we are now -- as a result of a multi-year investment program -- a far stronger company with significantly improved businesses and prospects," said chairman Mark S. Siegel.

Over 2013, Patterson-UTI repurchased around $85.8 million worth of stock. The company has $187 million remaining under its stock buyback program.

TheStreet Ratings team rates PATTERSON-UTI ENERGY INC as a Buy with a ratings score of B. The team has this to say about their recommendation:

"We rate PATTERSON-UTI ENERGY INC (PTEN) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, attractive valuation levels, solid stock price performance and increase in net income. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
PTEN $13.13 -4.40%
AAPL $94.41 0.41%
FB $100.55 -3.40%
GOOG $675.85 -1.10%
TSLA $150.94 -7.20%


Chart of I:DJI
DOW 15,905.63 -299.34 -1.85%
S&P 500 1,843.38 -36.67 -1.95%
NASDAQ 4,260.0340 -103.11 -2.36%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs