Q1: Revenue and EPS BEAT on Energy Activity Solid performance given the big decline in the stock price yesterday with YoY growth in Revenue, EBITDA and operating earnings.
Bookings and Earnings Backlog both incrementally higher which bodes well for the future but I am always nervous with this name if we get a sudden global growth scare like it did a couple of quarters ago the backlog can dry up quickly.
Still with declining revenues from its Consumer Products, Life Sciences and Transportation business line in the quarter they were saved by the large contract in its Energy business up 253%. This is clearly not sustainable. Clearly they will have to get those other business lines going if they want to drive EPS growth going forward.
The stock doesn’t belong trading below 10.00 but I don’t think we are heading back up to 15.00 – 16.00 range given the current economic conditions around the world.