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C&J Energy Services (CJES): Q1 EPS of $0.92 misses by $0.03. Revenue of $239M (+88% Y/Y)...

C&J Energy Services (CJES): Q1 EPS of $0.92 misses by $0.03. Revenue of $239M (+88% Y/Y) misses by $5M. Shares -5.8% AH. (PR)
Comments (4)
  • The stock does nothing but continue to be more profitable y/y with a very strong balance sheet, and and unequaled expertise in its industry; and yet the market continues to severely undervalue it to the tune of at least 1/2 the PE of its peers. Difficult to comprehend. If it was simply the regulatory "overhang" on the fracking industry as a whole then the industry's PE would presumably be under 5 as Cj's will be for 2012. I suspect that once they announce their first contract off the shores of the United Regulatory States the market may take a closer look at CJ.
    9 May 2012, 09:35 PM Reply Like
  • Well, one of these days CJES will get it's fair valuation. How many companies are debt free, make 92 cents per quarter, and are valued at $16-18 with tremendous growth ahead?
    9 May 2012, 09:57 PM Reply Like
  • I like that the language in the earnings release focused on the advantageous position that CJES holds as a developing growth company with great financials and the expertise and equipment to maintain the best margins in the industry. If that was the extent of the "blip" related to relocating a fleet, I think they fared better than the industry as a whole. While it would have been great to beat, there's absolutely nothing here that concerns me about my investment. In fact, I would see it as a great opportunity to move on if I was successfully short. As always, there is a seller for every buyer.
    10 May 2012, 08:22 AM Reply Like
  • The reason CJES trades at half the PE of it's peers is because the market is still unsure whether they will be a spot market service provider or a contract based provider. The mix gives them flexibility, but as we can see revenues can miss estimates as spot services can be somewhat sparatic. Overall I love the company and I am long it.
    1 Jul 2012, 10:46 PM Reply Like
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