Exterran Holdings Earnings: Here’s Why the Stock is Up 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. Shares are up 3.82%.

Exterran Holdings, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased to $0.31 in the quarter versus EPS of $-0.48 in the year-earlier quarter.

Revenue: Rose 32.75% to $837.3 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Exterran Holdings, Inc. reported adjusted EPS income of $0.31 per share. By that measure, the company beat the mean analyst estimate of $0.1. It beat the average revenue estimate of $814.78 million.

Quoting Management: “Second-quarter 2013 highlights included the highest quarterly level of EBITDA, as adjusted, in over four years. Our results benefitted from the implementation of performance improvement initiatives, particularly productivity gains in our fabrication business,” said Brad Childers, Exterran Holdings’ President and Chief Executive Officer. “The reduction in fabrication backlog and bookings compared to relatively high year-ago levels is expected to result in reduced fourth-quarter 2013 fabrication revenue compared to second-quarter 2013 levels. However, we are solidly on track to improve the company’s performance in 2013 over prior year results and we remain focused on improving the efficiency of our core operations.”

Key Stats (on next page)…

Revenue increased 3.19% from $811.38 million in the previous quarter. EPS increased 47.62% from $0.21 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.14 and has not changed. For the current year, the average estimate has moved up from a profit of $0.57 to a profit of $0.61 over the last ninety days.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

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