Select Energy: Q2 Shaping Up To Be A Blowout

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About: Select Energy Services, Inc. (WTTR), Includes: CVIA, EMES, HCR, SLCA, SND
by: Mr. Bert
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Mr. Bert
Long/short equity, value, special situations
Summary

Select Energy Services will report Q2 earnings shortly. I believe the stock could trade materially higher into and in the wake of that report.

Consensus calls for revenues of $406.4 million and EPS of $0.25. I believe that the company can report a blowout $425 million in revenue and EPS of $0.43.

WTTR is a unique company with no direct comparables. Investors are still figuring out how to model the company. A little analysis without any preconceived notions may be very instructive.

If I am even a little bit right, the stock could trade quickly to the $20-22 range, which would be 30-50% move from its current price of $14.78.

I have written three articles on Select Energy Services (WTTR) in the past six weeks. My first article focused on the company and its competitive positioning, wherein I concluded the shares are currently