Today's Perilous Reversal Stock: Exterran Holdings (EXH)

Trade-Ideas LLC identified Exterran Holdings ( EXH) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Exterran Holdings as such a stock due to the following factors:

  • EXH has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $31.4 million.
  • EXH has traded 219,146 shares today.
  • EXH is down 3.3% today.
  • EXH was up 11.5% yesterday.

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More details on EXH:

Exterran Holdings, Inc., together with its subsidiaries, provides operations, maintenance, services, and equipment for the oil and natural gas production, processing, and transportation applications. The stock currently has a dividend yield of 2.9%. EXH has a PE ratio of 5. Currently there are 4 analysts that rate Exterran Holdings a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Exterran Holdings has been 980,800 shares per day over the past 30 days. Exterran has a market cap of $1.4 billion and is part of the basic materials sector and energy industry. The stock has a beta of 2.04 and a short float of 3.7% with 1.79 days to cover. Shares are down 29.3% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Exterran Holdings as a hold. The company's strengths can be seen in multiple areas, such as its expanding profit margins, growth in earnings per share and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity.

Highlights from the ratings report include:
  • 36.10% is the gross profit margin for EXTERRAN HOLDINGS 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 -0.16% is in-line with the industry average.
  • 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 lower earnings of $0.36 versus $0.89 in the prior year. This year, the market expects an improvement in earnings ($0.61 versus $0.36).
  • Despite the weak revenue results, EXH has outperformed against the industry average of 22.6%. Since the same quarter one year prior, revenues slightly dropped by 7.5%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • Net operating cash flow has decreased to $52.68 million or 23.33% when compared to the same quarter last year. In conjunction, when comparing current results to the industry average, EXTERRAN HOLDINGS INC has marginally lower results.
  • EXH's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 59.20%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Although its share price is down sharply from a year ago, do not assume that it can now be tagged as cheap and attractive. The reality is that, based on its current price in relation to its earnings, EXH is still more expensive than most of the other companies in its industry.

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