Complete Production Services, Inc. - Momentum

Complete Production Services, Inc. (CPX) continues to pressure its multi-year high at $25.97 after reporting solid Q3 results that included a 35% earnings surprise. With an average earnings surprise of 178% over the last four quarters and a bullish growth projection, this Zacks #1 rank stock is gushing momentum.

Company Description

Complete Production Services, Inc. provides specialty production services to oil and gas companies primarily in North America and southeast Asia. The company was founded in 2001 and has a market cap of $1.6 billion.

Although shares of CPX have been strong for the last 18 months, shares got an extra boost on Oct 20 after the company reported strong Q3 results that handily beat expectations.

Third-Quarter Results

Revenue for the period was up 16% from last year to $419 million. Earnings also came in strong at 42 cents, 35% ahead of the Zacks Consensus Estimate, where the company now has an average earnings surprise of 178% over the last four quarters.

Complete Production noted that its results were driven by a number of horizontal drilling projects, typically offering higher margins and easier completion specs, and completion related activities in oil and liquid-rich areas.

Balance Sheet

The company also has a pretty solid balance sheet, with its cash and equivalents up $67 million from last year to $143 million against $650 million in total debt.

Estimates

We saw some pretty big movement in estimates on the good quarter, with the current year adding 31 cents to $1.11 and the next year adding 94 cents to $2.37, a very bullish 113% growth projection.

Valuation

But in spite of the recent gains, the valuation picture is still in check, with a forward P/E of 22X against its peer average of 20X, a very reasonable read in light of the bullish growth projection.

2-Year Chart

CPX has been strong for the last 18 months, recently hitting a new multi-year high at $25.97 on the good quarter. The stochastic below the chart is signaling that shares remain well away from over-bought territory, take a look below.

Michael Vodicka is the Momentum Stock Strategist for Zacks.com. He is also the Editor in charge of the new Zacks Momentum Trader Service.
 
COMPLETE PRODUC (CPX): Free Stock Analysis Report
 
Zacks Investment Research