SPN: Quick Take on Superior Energy Earnings

Large Cap Watch List (Track at Marketocracy) member Superior Energy Services, Inc. (SPN) today announced record net income of $70.1 million and diluted earnings per share of $0.85 on revenues of $396.8 million, as compared to analyst estimates of $0.80 on $377 million in revenue.

The company managed the growth without adding too significantly to the balance sheet. This suggests that cash flow from operations likely improved significantly, as did return on capital measures. Despite these improvements, however, the stock has stayed relatively flat for several months.

With a single-digit forward P/E multiple, I wouldn’t expect that to last much longer.

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