Shares of Oil States International, Inc. (OIS -3.24%) rallied on Thursday, rising more than 14% by 2:45 p.m. EDT, after the company reported better-than-expected first-quarter results.
Oil States International recorded $253.6 million in revenue during the quarter, which was 67.4% higher year over year and beat analysts' expectations by $28.4 million. Further, while the company posted a net loss of $0.8 million, or $0.01 per share, that was $0.14 per share better than the consensus estimate and a significant improvement from the year-ago adjusted loss of $0.35 per share. Driving the stronger-than-expected showing were the contributions from two recently completed acquisitions as well as an increase in service activity levels in the oil and gas market.
The biggest contributor to Oil States' stronger showing in the quarter came from GEODynamics, which the company acquired in January to form its new downhole technologies segment. This new business line added $45.8 million of revenue and $11.9 million of EBITDA, which was more than a third of the $32.3 million consolidated total.
With today's earnings-fueled rally, Oil States' stock is up more than 18% over the past year. While shares could have more upside from here as the oil market continues improving, they're not as cheap as they were. Because of that, investors might want to consider going with a cheaper oil stock instead of chasing Oil States right now.