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What: Shares of energy-services company Key Energy Services
So what: On a GAAP basis, Key Energy's first-quarter earnings were in the red, registering a $0.13 per-share loss. However, that loss was driven by a loss on the company's debt refinancing. Excluding that expense, Key Energy showed earnings per share of $0.09, topping the $0.07 that analysts had expected. Revenue for the quarter increased 12% from last year to $391 million.
Now what: Management's guidance was also very positive. Citing an "improving outlook," CEO Dick Alario projected full-year 2011 revenue to be up 50% to 55%. He also expects that second-quarter revenue will be up 15% to 20% sequentially and earnings per share will fall in a range of $0.18 to $0.21. The EPS guidance easily tops the current Wall Street expectation of $0.14 for the quarter.
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