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What: Shares of Hercules Offshore
So what: Speaking during today's conference call with analysts, Rynd said day rates on its shallow water rigs has been rising steadily over the past two months. "Given our largely fixed operating cost structure … any increase in day rates largely falls to the bottom line," Rynd said in his opening comments.
Now what: Investors' optimism is understandable, even if Hercules' Q2 results came in short of estimates. Revenue climbed 8% to $170.2 million, yet the driller's net loss increased by a penny, to $0.18 a share, over last year's Q2. Analysts were calling for a $0.16-per-share loss on $175.3 million in revenue. Be careful if you buy here, Fool. As promising as this growth story seems, Hercules Offshore has yet to make good. Do you agree? Disagree? Let us know what you think using the comments box below.
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Fool contributorTim Beyersis a member of theMotley Fool Rule Breakersstock-picking team. He didn't own shares in any of the companies mentioned in this article at the time of publication. Check out Tim'sportfolio holdingsandFoolish writings, or connect with him onGoogle+or Twitter, where he goes by@milehighfool. You can also get his insightsdelivered directly to your RSS reader.
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