We expect onshore oil and gas drilling contractor
Patterson-UTI Energy Inc.
) to beat expectations when it reports fourth-quarter 2012
results before the opening bell tomorrow, Thursday, Feb 7.
Why a Likely Positive Surprise?
Our proven model shows that Patterson-UTI Energy is likely to
beat earnings because it has the right combination of two key
Positive Zacks ESP:
Expected Surprise Prediction or ESP (Read:
Zacks Earnings ESP: A Better Method
), which represents the difference between the Most Accurate
estimate of 30 cents and the Zacks Consensus Estimate of 29
cents, stands at +3.45%. This is a meaningful and leading
indicator of a likely positive earnings surprise.
Zacks #3 Rank (Hold):
The stocks with Zacks Ranks of #1, 2 and 3 have a significantly
higher chance of beating the earnings. The sell rated stocks (#4
and 5) should never be considered while going into an earnings
The combination of Patterson-UTI Energy's Zacks Rank #3 (Hold)
and +3.45% ESP makes us confident of a positive earnings beat on
Feb 7, 2013.
What is Driving the Better Than Expected
Patterson-UTI Energy is the second-largest North American land
drilling contractor, having a large, high-quality fleet of
drilling rigs. The company's technologically-advanced Apex rigs
are the key to its success. Patterson-UTI's proprietary design
makes the rigs move faster than conventional rigs, drill quicker
and more efficiently than conventional rigs, and allows a safer
operating environment. As such, these rigs are better suited for
the new demands of the exploration business and, therefore,
commands higher dayrates and utilization than rigs from other
The positive trend is seen in the trailing four-quarter
average surprise of 5.29%. The company's third-quarter 2012
surprise was 2.63% owing to high utilization of the company's
Other Stocks to Consider
Here are some other firmsyou may want to consider on the basis
of our model, which shows that they have the right combination of
elements to post an earnings beat this quarter:
Atlas Energy L.P
), earnings ESP of +260.00% and Zacks Rank #1 (Strong Buy).
Northern Tier Energy LP
), earnings ESP of +2.94% and Zacks Rank #1 (Strong Buy).
Hercules Offshore Inc.
), earnings ESP of +14.29% and Zacks Rank #2 (Buy).
ATLAS ENERGY LP (ATLS): Free Stock Analysis
HERCULES OFFSHR (HERO): Free Stock Analysis
NORTHERN TIER (NTI): Free Stock Analysis
PATTERSON-UTI (PTEN): Free Stock Analysis
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