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What: Shares of oil and gas service provider TETRA Technologies (NYSE:TTI) fell as much as 13% in early trading after the company announced earnings. Shares recovered most of that loss and are down 4% as the market closes.
So what: Revenue was up 15.5% in the first quarter to $208.6 million, but that was well short of the $223.5 million analysts expected. Net income nearly doubled to $1.3 million, but that is only $0.02 per share, well short of the $0.11 estimate.
Now what: The Production Testing segment accounted for the disappointing results as profitability declined sequentially. Management expects the segment to improve in Q2 and continue to grow in the second half, but expectations have been pushed out. I like the revenue growth, but I'm not a buyer until I see bottom-line growth, because service providers are being squeezed in energy right now.
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Fool contributor Travis Hoium and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't 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.