What happened
Next-generation industrial technology company Oceaneering International (OII 1.64%) was riding the waves of investor affection this week. According to data compiled by S&P Global Market Intelligence, its shares were up by just over 10% week to date as of late Thursday evening, thanks in no small part to a price target increase by a U.S. bank.
So what
The person who launched that particular ship was Citigroup prognosticator Scott Gruber. Wednesday morning, Gruber upped his price target on Oceaneering stock by $3 per share to $19. He maintained his buy recommendation on the shares as he did so.
It wasn't immediately apparent why he ticked the price target higher, but recent global developments seem to favor the company. Oceaneering specializes in products for the energy industry, chiefly robotic devices for offshore operations, so the stubbornly high price of oil benefits its business.
The company's fundamentals have been looking rather strong lately; this is a fairly nervous time for the market, so many investors are gravitating toward solid operators connected to thriving industries.
In its most recently reported quarter, the company's revenue zoomed almost 20% higher year over year (to slightly under $560 million). On the bottom line, it flipped to a net profit of just over $18 million, against the year-ago deficit of $7 million.
Now what
This energy industry supplier should continue to be energized by the sector's growth. In that set of quarterly results, Oceaneering proffered guidance for both its current fourth quarter and the entirety of 2022, plus 2023.
For 2022, it anticipates booking a non-GAAP (adjusted) earnings before interest, taxes, depreciation, and amortization (EBITDA) figure of $215 million to $240 million, which would be an improvement over 2021's $211 million. Oceaneering's initial 2023 guidance calls for a leap to $260 million to $310 million.
