Maverick Tube Sinks

The stock sells off despite a first-quarter earnings double.
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Maverick Tube

(MVK)

said its first-quarter earnings more than doubled, but the stock sank 7% Wednesday.

The St. Louis-based company earned $70.9 million, or $1.80 a share, in the quarter, compared with $31.2 million, or 72 cents a share, a year ago. Analysts surveyed by Thomson First Call were expecting earnings of $1.68 a share in the most recent quarter.

First-quarter revenue rose 32.2% from a year ago period to $543.1 million, matching the Thomson target.

The company expects the second-quarter result to be affected by the typical seasonal decline in Canadian drilling activity, but it remains optimistic for the rest of the year.

"We are very pleased with the contributions of all of our business units to this quarter's record results. And, our efforts over the past several quarters to reduce ... expenses and create a more nimble, responsive and focused organization are beginning to bear fruit," the company said.

First-quarter gross profit rose 96.4% to $135.9 million and gross margin increased 818 basis points to 25%. Operating income for the quarter more than doubled to $112.1 million and operating margin moved up 854 basis points to 20.6%

By segment, first-quarter revenue from energy products segment rose 39.6% from a year-ago period to $465.6 million and gross profit for the segment more than doubled to $124 million. Revenue from electrical products segment was marginally up 0.3% to $77.4 million while gross profit was down 40.8% to $11.9 million.

Maverick fell $4.06 to $56.61.

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