Patterson-UTI Energy (PTEN) just jumped into a new multi-year high after reporting strong Q2 results that included an 8% earnings surprise. With a bullish next-year estimate calling for 28% growth, this Zacks #1 Rank stock has plenty of momentum.
Company Description
Patterson-UTI Energy, Inc. operates as a drilling services contractor in the United States. The company was founded in 1978 and has a market cap of $5 billion.
Shares of PTEN got a nice boost into a new multi-year high in late July after the company reported strong Q2 results that came in ahead of expectations.
Second-Quarter Results
Revenue for the period almost doubled from last year, climbing to $600 million. Earnings also looked good coming in at 52 cents, 8% ahead of the Zacks Consensus Estimate, where the company has an average earnings surprise of 9% over the last four quarters.
The good quarter was driven by surging demand that saw the company’s average rig count in July increase 25% from last year to 215.
Estimates
We some a little movement in estimates off the good quarter, with the current year adding 2 cents to $2.16 while the next-year estimate added 6 cents to $2.76, a bullish 28% growth projection.
Valuation
But in spite of the gains, the valuation still looks good, with PTEN’s forward P/E of 15X a discount to its peer average of 17X.
12-Month Chart
On the chart, shares hit a new multi-year high on the good quarter. Look for support from the long-term trend on any weakness. Take a look below.
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