October 27, 2010
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: Oceaneering International (NYSE: OII ) shares jumped 12% today after the company posted solid earnings.
So what: The company posted earnings of $1.09 per share, easily beating analyst estimates of $0.94. Revenue of $516 million, up 7% from a year ago, also beat estimates.
Now what: The offshore oil service industry is picking up in the wake of the Gulf oil spill, and Oceaneering is a prime benefactor. I see no reason to think the trend won't continue given current regulatory conditions and a pickup in drilling activity once the Gulf fully opens. I'm buying these earnings as a sign of better things to come.
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