Please ensure Javascript is enabled for purposes of website accessibility

Why TETRA Technologies Stock Jumped 18.5% Today

By Rich Smith - May 10, 2017 at 1:42PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Quarterly losses narrow, but revenues come up short.

What happened

Shares of oil and gas oil-field services TETRA Technologies (TTI 4.88%) are up 18.5% as of 1:15 p.m. EDT.

So what

TETRA reported its fiscal first-quarter earnings earlier this morning. The company booked a $0.02-per-share loss on sales of $168 million in the quarter. Sales were down only 1% year over year, while the loss was much narrower than the $1.11 per share it reported in the year-ago quarter.

Relative to expectations, TETRA's revenues fell a bit short of the $168.6 million that analysts had predicted. On the other hand, its loss seems to have been quite a bit better than the $0.12 consensus estimate. I say "seems" because analysts often give guidance based on pro forma numbers. In that regard, TETRA reported pro forma losses of $0.10 a share, which while better than estimates, isn't much better than delivering a $0.02 loss when a $0.12 loss had been expected.

Motorbike riding an up arrow on a stock chart.

Image source: Getty Images.

Now what

Regardless of that quibble, investors seem generally impressed with what TETRA reported. Nor do investors seem wary of the fact that it declined to give guidance for the rest of this year. As management explained, giving a GAAP earnings estimate for this year would require it to reveal "forecasted information for CSI Compressco," TETRA's indirect, wholly owned subsidiary.

As for Wall Street, analysts are still expecting TETRA to lose money this year, despite the first quarter's improved performance. The latest estimates call for TETRA to lose $0.21 per share on about $779 million in revenue by year-end.

Why investors think that prospect justifies an 18.5% jump in stock price is anybody's guess.

Rich Smith has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

TETRA Technologies, Inc. Stock Quote
TETRA Technologies, Inc.
$4.08 (4.88%) $0.19

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/11/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.