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Hanover Compressor Swings to Profit

The oil eqiupment and services company records a 15% jump in revenue.

Hanover Compressor (HC) swung to a profit in the third quarter, helped by higher revenue.

The Houston-based company, a supplier of equipment and services to the oil and gas industries, earned $12.3 million, or 12 cents a share, in the quarter, compared with a loss of $14.9 million, or 16 cents a share, a year ago.

The company earned 11 cents a share from its continuing operations in the most recent quarter. Analysts polled by Thomson First Call were expecting earnings of 15 cents a share for the quarter.

Third-quarter revenue rose 15% from a year ago to $423.8 million. Analysts had expected a revenue of $408.64 million.

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By segment, revenue from U.S. rentals increased 12% to 98 million; international rentals rose 10% to $63.8 million; parts, service and used-equipment revenue fell 35% to $48 million; and compressor and accessory fabrication revenue rose 74% to $90 million. Production and processing-equipment fabrication revenue rose 28% to $115.9 million.

Hanover's fabrication backlog was $688.8 million on Sept. 30, compared with $394.8 million in the year-ago period.

"We continue to see significant growth opportunities for Hanover and remain optimistic about the future," the company said.

Shares of the company were down 31 cents, or 1.6%, to $19.46 Thursday.

This story was created through a joint venture between TheStreet.com and IRIS.