Exterran Holdings Earnings: Here’s Why Investors are Ambivalent Now

Exterran Holdings, Inc. (NYSE:EXH) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company.

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Exterran Holdings, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased to $0.21 in the quarter versus EPS of $-0.43 in the year-earlier quarter.

Revenue: Rose 29.51% to $811.37 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Exterran Holdings, Inc. reported adjusted EPS income of $0.21 per share. By that measure, the company beat the mean analyst estimate of $0.03. It beat the average revenue estimate of $761.89 million.

Quoting Management: “In the first quarter of 2013, distributable cash flow increased by 8% on a sequential basis to a record quarterly level driven by the implementation of growth strategies and performance improvement initiatives. In addition, we expanded our leading market position in natural gas contract operations services with the acquisition of compression assets from Exterran Holdings on March 31, 2013,” said Brad Childers, Chairman, President and Chief Executive Officer of Exterran Partners’ managing general partner. “Our goal is to continue to grow the partnership through new business activities related to the development of liquids-rich and shale plays, further execution of our dropdown strategy with Exterran Holdings, and third-party acquisitions.”

Key Stats (on next page)…

Revenue decreased 3.28% from $838.92 million in the previous quarter. EPS increased 133.33% from $0.09 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.07 to a profit $0.09. For the current year, the average estimate has moved up from a profit of $0.3 to a profit of $0.41 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)