Cal Dive International Shares Plunged: What You Need to Know

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 Cal Dive International (NYSE: DVR  ) plunged as much as 14% in intraday trading after reporting a worse-than-expected first-quarter loss.

So what: Revenue rose 66% to $95.4 million, yet the profit picture didn't improve. The oilfield services provider lost $0.20 a share in Q1. Analysts had been calling for a $0.09-per-share loss on $98.2 million in revenue.

Now what: The miss comes at an odd time. Oil remains well above $100 a barrel, which should give Cal Dive customers Apache (NYSE: APA  ) and Chevron (NYSE: CVX  ) plenty of reason to increase their use of the company's services. But if they are, the higher revenue still isn't translating into higher profits. I'd avoid this stock untill that changes.

Interested in more info on Cal Dive International? Add it to your watchlist.

Fool contributor Tim Beyers is a member of the Motley Fool Rule Breakers stock-picking team. You can try any of our Foolish newsletter services free for 30 days.

Tim didn't own shares in any of the companies mentioned in this article at the time of publication. Check out his portfolio holdings and Foolish writings, or connect with him on Twitter as @milehighfool. You can also get his insights delivered directly to your RSS reader. 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 is also on Twitter as @TheMotleyFool. Its disclosure policy is at least 10% better than other disclosure policies.


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