Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of energy industry supplier Frank's International NV dropped 14% today after reporting earnings.
So what: Third-quarter revenue fell 7.8% sequentially, to $270.1 million, and net income dropped 61%, to $40.8 million. On an adjusted basis, earnings per share were $0.34, $0.06 below estimates.
Now what: Short term, there was some weakness in results due to a lower land rig count in the U.S. But management expects full-year revenue to be flat with last year, and potentially increase as ultra-deepwater drilling increases. This quarter wasn't outstanding, but the company is well positioned in the market and, at 14 times this year's earnings estimates, I think there's still upside in the stock.
One stock to keep an eye on
If you're looking for another top energy pick, The Motley Fool's chief investment officer has hand-picked one such opportunity in our new report: "The Motley Fool's Top Stock for 2013." To find out which stock it is and read our in-depth report, simply click here. It's free!
The article Why Shares of Frank's International NV Dropped Today originally appeared on Fool.com.Fool contributor Travis Hoium has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.