Markets

3 Stocks With Promising Q3 Reports

By Louis Navellier, Editor, Blue Chip Growth

As earnings season continues, staying current on the latest releases is important to the health of investors’ portfolios. Be sure to see how your current holdings are doing and what stocks you should buy or sell.

PLUS: 5 High Dividend Stocks Safe From Market Meltdowns

Here are three stocks with positive Q3 results:

Emerge Energy Services (EMES)

Emerge Energy Services (EMES) had many concerned about the slide in EMES shares during September. The main culprit of the dip was the overall weakness of energy stocks, but I fully expected EMES to bounce back strongly, as it did in Q3, building on a strong second quarter. Plus, EMES stock has an attractive 4.2% dividend yield.

Emerge Energy Services walloped analysts estimates for the third quarter when it released results this morning. Emerge Energy Services reported net income of $26.1 million, or $1.08 per share, which was 68.75% annual earnings growth and beat the consensus estimate of $0.90 by 20%.

Revenues increased nearly 10% year-over-year to $296.33 million, up from $270.24 million in Q3 2013. Analysts were looking for $295.21 million. So, Emerge Energy Services posted a slight sales surprise.

Tallgrass Energy Partners LP (TEP)

Tallgrass Energy Partners (TEP) maintains it good reputation as the company continues to expand the Pony Express crude oil pipeline. Tallgrass Energy Partners’ current expansion plans could increase capacity by 400,000 barrels per day and be operational in the second half of 2016. Tallgrass Energy Partners announced a strong third-quarter.

Tallgrass Energy Partners reported net income of $11.44 million, or 23 cents per share, and adjusted EBITDA of $23.7 million. So, net income increased 104% over last year’s third quarter. However, that fell short of the consensus estimate for 28 cents per share

Tallgrass Energy Partner noted that it increased the third-quarter dividend to 41 cents per unit, a 38% increase over the dividend in Q3 2013. And TEP plans to lift the fourth-quarter distribution by at least 7 cents per unit.

In the fourth quarter, TEP is expected to grow earnings by 45.5%, well above growth projections for its industry (5.1%) and sector (13.6%).

Spirit Airlines (SAVE)

Spirt Airlines (SAVE) continues to fly high. Spirit Airlines announced another solid report for its third-quarter earnings on Oct. 28. Spirit Airlines has posted a positive earnings surprise in each of the past four quarters. Analysts had revised their estimates slightly higher in the past three months.

Spirit Airlines released third-quarter results that exceeded expectations. If you recall, the consensus estimate was for earnings of 96 cents per share on $518.9 million in sales. Spirit Airlines actually reported adjusted earnings per share of $1.01 on $519.8 million in revenues. So, Spirit Airlines posted a 5.2% earnings surprise and a slight sales surprise.

Spirit Airlines management attributed much of revenue growth in the third quarter to an increase in flight volume and higher operating yields. Spirit Airlines also added one new A320 aircraft to its fleet, bring the total to 58 planes. It also noted that it recently added another A320 aircraft and plans to add six more by the end of the year.

Louis Navellier is a renowned growth investor. He is the editor of five investing newsletters: Blue Chip Growth, Emerging Growth, Ultimate Growth, Family Trust and Platinum Growth. His most popular service, Blue Chip Growth, has a track record of beating the market 3:1 over the last 14 years. He uses a combination of quantitative and fundamental analysis to identify market-beating stocks. Mr. Navellier has made his proven formula accessible to investors via his free, online stock rating tool, PortfolioGrader.com. Louis Navellier may hold some of the aforementioned securities in one or more of his newsletters.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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