NEW YORK (
) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, robust revenue growth, expanding profit margins and solid stock price performance. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.
Highlights from the ratings report include:
- Powered by its strong earnings growth of 96.66% and other important driving factors, this stock has surged by 64.90% over the past year, outperforming the rise in the S&P 500 Index during the same period. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
- 46.90% is the gross profit margin for SUPERIOR ENERGY SERVICES INC which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 9.40% trails the industry average.
- SPN's revenue growth trails the industry average of 50.2%. Since the same quarter one year prior, revenues rose by 20.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
- 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 99.9% when compared to the same quarter one year prior, rising from $24.07 million to $48.11 million.
- SUPERIOR ENERGY SERVICES INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, SUPERIOR ENERGY SERVICES INC turned its bottom line around by earning $1.03 versus -$1.31 in the prior year. This year, the market expects an improvement in earnings ($1.82 versus $1.03).
Superior Energy Services, Inc. provides specialized oilfield services and equipment to serve the production and drilling related needs of oil and gas companies. The company operates through three segments: Subsea and Well Enhancement, Drilling Products and Services, and Marine. The company has a P/E ratio of 43.2, equal to the average energy industry P/E ratio and above the S&P 500 P/E ratio of 17.7. Superior Energy Services has a market cap of $3.3 billion and is part of the
industry. Shares are up 12.5% year to date as of the close of trading on Thursday.
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