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 drilling contractor Parker Drilling (NYSE: PKD ) jumped as much as 19% today after announcing earnings.
So what: Third-quarter revenue jumped 44% from a year ago, to $237.8 million, and adjusted net income dropped 16%, to $14.5 million, or $0.12 per share. Analysts were only expecting $231.4 million in revenue and $0.09 per share in earnings, which is why shares jumped.
Now what: The inland U.S. market continues to be weak, but Parker's management sees improvement in offshore and international markets. This is a theme we've seen from across the industry as new oilfields will drive growth in these markets. I like the company's prospects, and generally prefer service providers, because they don't have the same risk as oil explorers. That's why I think shares still have room to run higher.
Now is the time to buy into the energy boom
Record oil and natural gas production is revolutionizing the United States' energy position. Finding the right plays, while historic amounts of capital expenditures are flooding the industry, will pad your investment nest egg. For this reason, the Motley Fool is offering a comprehensive look at three energy companies set to soar during this transformation in the energy industry. To find out which three companies are spreading their wings, check out the special free report, "3 Stocks for the American Energy Bonanza." Don't miss out on this timely opportunity; click here to access your report -- it's absolutely free.