Even though Complete Production Services is not actually developing and distributing crude and natural gas, the company is producing excellent results servicing this sector of the market that is flush with cash from sky-rocketing energy prices.
This dynamic was evident when the company reported its first-quarter results on Apr 23. Revenue was up 12% from the same period last year, to $455.3 million. Net income was down marginally from last year, coming in at $43.9 million, down from $47.4 million. This produced earnings of 60 cents per share, still ahead of analyst estimates, who were looking for earnings of 51 cents per share.
Estimates Rising
After the excellent first-quarter results, the analyst community boosted estimates to reflect the company's growth trajectory. Within the last 30 days, the current-year estimate has tacked on 24 cents, advancing to its current projection of $2,40 per share.
With the upgraded earnings projections in hand, this stock looks very reasonably priced, carrying a forward P/E multiple of just 12.5X, a relative bargain to the overall market.
Sentiment: Bullish
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$25.02 (07/12/07)
