Why Shares of Frank's International NV Dropped Today

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 energy industry supplier Frank's International NV (NYSE: FI  ) dropped 14% today after reporting earnings.

So what: Third-quarter revenue fell 7.8% sequentially, to $270.1 million, and net income dropped 61%, to $40.8 million. On an adjusted basis, earnings per share were $0.34, $0.06 below estimates. 

Now what: Short term, there was some weakness in results due to a lower land rig count in the U.S. But management expects full-year revenue to be flat with last year, and potentially increase as ultra-deepwater drilling increases. This quarter wasn't outstanding, but the company is well positioned in the market and, at 14 times this year's earnings estimates, I think there's still upside in the stock.

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  • Report this Comment On November 13, 2013, at 5:46 PM, TThompson88 wrote:

    Great insight. Thanks for the article. I haven't seen many comments or articile written about FI so I found this to be very helpful. In your opinion, when do you foresee this rebounding to 30?

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