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What: Shares of Oceaneering International (NYSE:OII) were rising with the tide today, gaining as much as 10% after delivering a strong quarter and a healthy dividend hike.
So what: The offshore oil and gas supplier said earnings per share jumped 47% to $0.69 on 21% revenue growth to $718 million. Both numbers topped estimates as analysts had expected a per-share profit of just $0.60, and profits came in ahead of company guidance as well. CEO Kevin McEvoy said "all business segments performed well," and said much of the earnings growth was due to accelerated work in its Asset Integrity and Advanced Technologies businesses. Management also bumped up full-year guidance EPS to $3.10-$3.30 from a previous range of $3.00-$3.25 and $0.81-$0.86 for the current quarter. The company also raised its quarterly dividend 22% to $0.22 from $0.18.
Now what: The offshore specialist seems a little pricey after today's jump, but if it can keep EPS growth anywhere near this level, shares should move higher. There isn't much in this report that should affect your investing thesis, but with oil drillers searching for alternative drilling sources, an offshore supplier like Oceaneering could have a bright future. Keep an eye on Oceaneering by adding the company to your Watchlist here.
Fool contributor Jeremy Bowman has no position in any stocks mentioned. The Motley Fool recommends Oceaneering International. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.