Companies tied to the nuclear power industry were in focus for much of Monday's trading session, as an upbeat earnings report from bellwether uranium miner Cameco
Not surprisingly, this news helped to boost a number of other smaller miners and helped to put a variety of auxiliary firms, such as those that engage in power plant construction, into focus. One company that looks to be under the spotlight given the surge in uranium demand and prices is Houston-based McDermott International
The company released its third-quarter profits after the bell yesterday, reporting an EPS of just nine cents a share, down from 50 cents a share in the same period a year ago. Sales also plummeted as the company posted revenues of just $732.1 million, down from just over one billion in the third quarter last year. These figures represent a huge discount from analyst predictions, which came in at 28 cents a share in earnings on sales of $886.1 million. Nevertheless, the markets shrugged off these disappointing figures and sent shares of the engineering and construction firm up by close to 2% in after hours trading.
These gains likely came thanks to the upbeat nature of CCJ's report as well as some positive comments from McDermott's CEO. "McDermott's operating performance in the third quarter of 2010 was outstanding, although somewhat muted by the non-cash impairment charges. New awards during the three month period ended September 30, 2010 were light. However, we are pleased to report that in the month of October 2010, McDermott recognized bookings of approximately $1.2 billion. As such, we believe the market we serve continues to be robust and that the outlook for our business remains strong, particularly in the Middle East and Asia Pacific segments," said President and CEO Stephen M. Johnson, suggesting that although the company may have endured an underwelming quarter, the outlook heading into next year is bright as numerous countries build up nuclear power operations and demand for nuclear power continues to surge higher [also read Nuclear Power ETFs: Ready To Surge?].
Thanks to this crucial earnings report and the general buzz in the uranium mining industry, look for the iShares S&P Global Nuclear Energy Index Fund
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