On May 25, Zacks Investment Research upgraded
Newpark Resources Inc.
) to a Zacks Rank #1 (Strong Buy).
DAWSON GEOPHYS (DWSN): Free Stock Analysis
EXTERRAN HLDGS (EXH): Free Stock Analysis
EXTERRAN PTNRS (EXLP): Free Stock Analysis
NEWPARK RESOUR (NR): Free Stock Analysis
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Why the Upgrade?
Newpark Resources Inc. has been witnessing rising earnings
estimates on the back of strong first quarter 2013 results.
Moreover, this product and service provider in the oil and gas
exploration industry delivered positive earnings surprises in 7
of the last 10 quarters with an average beat of 10.9%.
Newpark Resources' first quarter earnings per share came in at 18
cents, surpassing the Zacks Consensus Estimate by 5.9%. The
results benefited from strong domestic and international
performance at the Fluids Systems and Engineering segments. The
Environmental Service segment also delivered, thanks to the
strengthening initiatives in the Gulf of Mexico. However, soft
results from Mats and Integrated Services segments marginally
offset the positives.
The strong financial position of Newpark Resources enables its
board of directors to authorize share buybacks thereby boosting
shareholder value. In the first quarter the board authorized
another $50 million share repurchase program, following the $50
million repurchase program completed in the fourth quarter of
The board of directors of Newpark Resources has decided to
initiate a process to hive its Environmental Services segment to
remain competitive and focus on developing technologies in its
core drilling fluids and mats segments. In addition, the company
also continues to focus on expanding its area of operations.
The Zacks Consensus Estimate for 2013 increased 6.6% to 81 cents
per share as 5 out of 8 estimates were revised higher over the
last 30 days. For 2014, the majority of estimates were revised
higher over the same time frame, lifting the Zacks Consensus
Estimate by 11.4% to 98 cents per share.
Other Stocks to Consider
Besides Newpark Resources Inc. other operators in the industry
with a favorable Zacks Rank are
Exterran Holdings Inc.
Dawson Geophysical Company
Exterran Partners L.P.
). All these stocks presently carry a Zacks Rank #1 (Strong Buy)
and look well positioned now.