Major Estimate Revision • May 12
Consensus forecasts updated The consensus outlook for 2022 has been updated. 2022 EPS estimate increased from US$3.11 to US$5.14. Revenue forecast steady at US$3.33b. Net income forecast to grow 29% next year vs 72% growth forecast for Oil and Gas industry in the US. Consensus price target of US$67.25 unchanged from last update. Share price was steady at US$61.15 over the past week. Reported Earnings • May 05
First quarter 2022 earnings: Revenues exceed analysts expectations while EPS lags behind First quarter 2022 results: EPS: US$0.25 (down from US$0.95 in 1Q 2021). Revenue: US$936.0m (up 73% from 1Q 2021). Net income: US$12.4m (down 68% from 1Q 2021). Profit margin: 1.3% (down from 7.1% in 1Q 2021). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 30%. Earnings per share (EPS) missed analyst estimates by 61%. Over the next year, revenue is expected to shrink by 9.2% compared to a 24% growth forecast for the industry in the US. Over the last 3 years on average, earnings per share has increased by 8% per year but the company’s share price has increased by 53% per year, which means it is tracking significantly ahead of earnings growth. Recent Insider Transactions Derivative • Mar 23
President exercised options and sold US$888k worth of stock On the 14th of March, Cynthia Warner exercised options to acquire 15k shares at no cost and sold these for an average price of US$61.16 per share. This trade did not impact their existing holding. For the year to December 2019, Cynthia's total compensation was 23% salary and 77% other compensation. This indicates that these sales could comprise a meaningful part of their income for the year. Since March 2021, Cynthia's direct individual holding has decreased from 36.55k shares to 24.18k. Company insiders have collectively sold US$16m more than they bought, via options and on-market transactions in the last 12 months. Major Estimate Revision • Mar 15
Consensus revenue estimates fall by 11% The consensus outlook for revenues in 2022 has deteriorated. 2022 revenue forecast decreased from US$3.71b to US$3.30b. EPS estimate fell from US$3.32 to US$3.12 per share. Net income forecast to shrink 25% next year vs 58% growth forecast for Oil and Gas industry in the US . Consensus price target down from US$74.25 to US$68.40. Share price was steady at US$61.16 over the past week. Price Target Changed • Mar 12
Price target decreased to US$68.40 Down from US$74.25, the current price target is an average from 8 analysts. New target price is 12% above last closing price of US$60.89. The company is forecast to post earnings per share of US$3.12 for next year compared to US$4.48 last year. Price Target Changed • Mar 09
Price target decreased to US$69.75 Down from US$75.93, the current price target is an average from 6 analysts. New target price is 14% above last closing price of US$61.00. The company is forecast to post earnings per share of US$3.32 for next year compared to US$4.48 last year. Major Estimate Revision • Mar 08
Consensus forecasts updated The consensus outlook for 2022 has been updated. 2022 revenue forecast increased from US$3.03b to US$3.71b. EPS estimate fell from US$3.62 to US$3.32. Net income forecast to shrink 17% next year vs 60% growth forecast for Oil and Gas industry in the US . Consensus price target down from US$75.93 to US$73.86. Share price was steady at US$60.83 over the past week. Reported Earnings • Mar 04
Full year 2021 earnings: EPS and revenues exceed analyst expectations Full year 2021 results: EPS: US$4.48 (up from US$3.07 in FY 2020). Revenue: US$3.24b (up 52% from FY 2020). Net income: US$211.7m (up 76% from FY 2020). Profit margin: 6.5% (up from 5.6% in FY 2020). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 2.6%. Earnings per share (EPS) also surpassed analyst estimates by 6.1%. Over the next year, revenue is expected to shrink by 3.3% compared to a 18% growth forecast for the oil industry in the US. Over the last 3 years on average, earnings per share has increased by 7% per year but the company’s share price has increased by 38% per year, which means it is tracking significantly ahead of earnings growth. Valuation Update With 7 Day Price Move • Feb 24
Investor sentiment improved over the past week After last week's 16% share price gain to US$41.11, the stock trades at a forward P/E ratio of 11x. Average forward P/E is 10x in the Oil and Gas industry in the US. Total returns to shareholders of 53% over the past three years. Director Overboarding • Sep 01
Director Christopher Sorrells has joined 3rd company board Lead Independent Director Christopher Sorrells has been appointed to the board of ENGlobal Corporation (NasdaqCM:ENG). Sorrells now sits on a total of 3 company boards. With 3 board positions including the role of CEO at Spring Valley Acquisition Corp. (NasdaqCM:SV), the director is at risk of having too many board obligations according to the Simply Wall St Risk Model. Recent Insider Transactions Derivative • Aug 20
General Counsel & Corporate Secretary exercised options and sold US$833k worth of stock On the 16th of August, Eric Bowen exercised options to acquire 15k shares at no cost and sold these for an average price of US$54.00 per share. This trade did not impact their existing holding. Since September 2020, Eric's direct individual holding has increased from 40.94k shares to 53.78k. Company insiders have collectively sold US$15m more than they bought, via options and on-market transactions in the last 12 months. Recent Insider Transactions • Aug 13
Chief Financial Officer recently bought US$55k worth of stock On the 12th of August, Richard Bealmear bought around 1k shares on-market at roughly US$55.32 per share. This was the largest purchase by an insider in the last 3 months. This was Richard's only on-market trade for the last 12 months. Major Estimate Revision • Aug 12
Consensus EPS estimates increase to US$4.68 The consensus outlook for earnings per share (EPS) in 2021 has improved. 2021 revenue forecast increased from US$2.87b to US$3.03b. EPS estimate increased from US$4.10 to US$4.68 per share. Net income forecast to grow 20% next year vs 32% growth forecast for Oil and Gas industry in the US. Consensus price target down from US$84.16 to US$82.31. Share price fell 2.0% to US$56.30 over the past week. Reported Earnings • Aug 05
Second quarter 2021 earnings released: EPS US$1.64 (vs US$0.021 in 2Q 2020) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2021 results: Revenue: US$816.2m (up 50% from 2Q 2020). Net income: US$78.8m (up US$78.0m from 2Q 2020). Profit margin: 9.7% (up from 0.2% in 2Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 11% per year but the company’s share price has increased by 45% per year, which means it is tracking significantly ahead of earnings growth. Recent Insider Transactions • Jul 22
Insider recently sold US$582k worth of stock On the 15th of July, Chad Stone sold around 9k shares on-market at roughly US$63.05 per share. In the last 3 months, there was an even bigger sale from another insider worth US$946k. Insiders have been net sellers, collectively disposing of US$4.3m more than they bought in the last 12 months. Recent Insider Transactions • Jun 24
General Counsel & Corporate Secretary recently sold US$664k worth of stock On the 21st of June, Eric Bowen sold around 10k shares on-market at roughly US$63.93 per share. In the last 3 months, there was an even bigger sale from another insider worth US$946k. Insiders have been net sellers, collectively disposing of US$3.7m more than they bought in the last 12 months. Recent Insider Transactions • Jun 06
Insider recently sold US$340k worth of stock On the 2nd of June, Chad Stone sold around 5k shares on-market at roughly US$68.00 per share. In the last 3 months, there was an even bigger sale from another insider worth US$946k. Insiders have been net sellers, collectively disposing of US$1.3m more than they bought in the last 12 months. Recent Insider Transactions Derivative • Jun 05
Insider notifies of intention to sell stock Chad Stone intends to sell 14k shares in the next 90 days after lodging an Intent To Sell Form on the 2nd of June. If the sale is conducted around the recent share price of US$64.34, it would amount to US$915k. Since September 2020, Chad's direct individual holding has increased from 119.93k shares to 124.40k. Company insiders have collectively sold US$11m more than they bought, via options and on-market transactions in the last 12 months. Valuation Update With 7 Day Price Move • Jun 04
Investor sentiment improved over the past week After last week's 15% share price gain to US$70.46, the stock trades at a forward P/E ratio of 16x. Average forward P/E is 11x in the Oil and Gas industry in the US. Total returns to shareholders of 289% over the past three years. Executive Departure • Jun 02
Senior Vice President of Manufacturing & Engineering Brad Albin has left the company On the 1st of June, Brad Albin's tenure as Senior Vice President of Manufacturing & Engineering ended after less than a year in the role. As of March 2021, Brad personally held 93.68k shares (US$6.2m worth at the time). A total of 2 executives have left over the last 12 months. Executive Departure • May 27
Independent Director has left the company On the 18th of May, Michael Scharf's tenure as Independent Director ended after 9.3 years in the role. As of March 2021, Michael personally held 37.06k shares (US$2.4m worth at the time). Michael is the only executive to leave the company over the last 12 months. Recent Insider Transactions Derivative • May 27
General Counsel & Corporate Secretary exercised options and sold US$2.1m worth of stock On the 25th of May, Eric Bowen exercised options to acquire 36k shares at no cost and sold these for an average price of US$59.52 per share. This trade did not impact their existing holding. Since September 2020, Eric's direct individual holding has increased from 40.94k shares to 61.02k. Company insiders have collectively sold US$6.4m more than they bought, via options and on-market transactions in the last 12 months. Recent Insider Transactions • May 22
Lead Independent Director recently sold US$946k worth of stock On the 18th of May, Christopher Sorrells sold around 15k shares on-market at roughly US$63.04 per share. This was the largest sale by an insider in the last 3 months. Insiders have been net sellers, collectively disposing of US$1.7m more than they bought in the last 12 months. Recent Insider Transactions Derivative • May 22
Lead Independent Director notifies of intention to sell stock Christopher Sorrells intends to sell 15k shares in the next 90 days after lodging an Intent To Sell Form on the 17th of May. If the sale is conducted around the recent share price of US$63.17, it would amount to US$948k. Since March 2021, Christopher has owned 43.71k shares directly. Company insiders have collectively sold US$4.2m more than they bought, via options and on-market transactions in the last 12 months. Valuation Update With 7 Day Price Move • May 19
Investor sentiment improved over the past week After last week's 18% share price gain to US$65.89, the stock trades at a forward P/E ratio of 15x. Average forward P/E is 11x in the Oil and Gas industry in the US. Total returns to shareholders of 280% over the past three years. Major Estimate Revision • May 11
Consensus forecasts updated The consensus outlook for 2021 has been updated. 2021 EPS estimate increased from US$3.49 to US$4.41. Revenue forecast steady at US$2.67b. Net income forecast to grow 121% next year vs 29% growth forecast for Oil and Gas industry in the US. Consensus price target down from US$97.89 to US$89.33. Share price fell 4.6% to US$56.50 over the past week. Reported Earnings • May 05
First quarter 2021 earnings released: EPS US$0.95 (vs US$1.88 in 1Q 2020) The company reported a soft first quarter result with weaker earnings and profit margins, although revenues improved. First quarter 2021 results: Revenue: US$539.7m (up 14% from 1Q 2020). Net income: US$38.6m (down 47% from 1Q 2020). Profit margin: 7.1% (down from 16% in 1Q 2020). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 20% per year but the company’s share price has increased by 62% per year, which means it is tracking significantly ahead of earnings growth. Price Target Changed • May 04
Price target decreased to US$89.56 Down from US$97.89, the current price target is an average from 7 analysts. New target price is 70% above last closing price of US$52.55. Stock is up 114% over the past year. Recent Insider Transactions Derivative • Mar 19
Insider exercised options and sold US$279k worth of stock On the 11th of March, Brad Albin exercised options to acquire 3k shares at no cost and sold these for an average price of US$82.72 per share. This trade did not impact their existing holding. Since March 2020, Brad's direct individual holding has increased from 66.81k shares to 87.80k. Company insiders have collectively sold US$3.3m more than they bought, via options and on-market transactions in the last 12 months. Valuation Update With 7 Day Price Move • Mar 18
Investor sentiment deteriorated over the past week After last week's 16% share price decline to US$69.19, the stock trades at a forward P/E ratio of 16x. Average forward P/E is 9x in the Oil and Gas industry in the US. Total returns to shareholders of 463% over the past three years. Major Estimate Revision • Mar 08
Analysts update estimates The 2021 consensus revenue estimate increased from US$2.46b to US$2.56b. Earnings per share (EPS) estimate was lowered from US$5.33 to US$4.25 for the same period. Net income is expected to grow by 55% next year compared to 18% growth forecast for the Oil and Gas industry in the US. The consensus price target increased from US$94.38 to US$103. Share price is down by 1.9% to US$76.27 over the past week. Price Target Changed • Mar 02
Price target raised to US$103 Up from US$94.38, the current price target is an average from 4 analysts. The new target price is 19% above the current share price of US$86.67. As of last close, the stock is up 221% over the past year. Reported Earnings • Feb 27
Full year 2020 earnings released: EPS US$3.13 (vs US$9.95 in FY 2019) The company reported a poor full year result with weaker earnings, revenues and profit margins. Full year 2020 results: Revenue: US$2.14b (down 19% from FY 2019). Net income: US$122.8m (down 68% from FY 2019). Profit margin: 5.7% (down from 14% in FY 2019). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 45% per year but the company’s share price has increased by 93% per year, which means it is tracking significantly ahead of earnings growth. Analyst Estimate Surprise Post Earnings • Feb 27
Revenue beats expectations, earnings disappoint Revenue exceeded analyst estimates by 1.3%. Earnings per share (EPS) missed analyst estimates by 9.1%. Over the next year, revenue is forecast to grow 15%, compared to a 28% growth forecast for the Oil and Gas industry in the US. Valuation Update With 7 Day Price Move • Feb 10
Investor sentiment improved over the past week After last week's 17% share price gain to US$111, the stock is trading at a trailing P/E ratio of 7.3x, up from the previous P/E ratio of 6.2x. This compares to an average P/E of 10x in the Oil and Gas industry in the US. Total returns to shareholders over the past three years are 919%. Is New 90 Day High Low • Feb 09
New 90-day high: US$111 The company is up 82% from its price of US$61.39 on 10 November 2020. The American market is up 16% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Oil and Gas industry, which is up 32% over the same period. Valuation Update With 7 Day Price Move • Jan 22
Investor sentiment improved over the past week After last week's 17% share price gain to US$97.05, the stock is trading at a trailing P/E ratio of 6.4x, up from the previous P/E ratio of 5.5x. This compares to an average P/E of 10x in the Oil and Gas industry in the US. Total returns to shareholders over the past three years are 786%. Price Target Changed • Jan 09
Price target raised to US$79.57 Up from US$74.14, the current price target is an average from 6 analysts. The new target price is 5.6% below the current share price of US$84.29. As of last close, the stock is up 233% over the past year. Valuation Update With 7 Day Price Move • Jan 07
Investor sentiment improved over the past week After last week's 16% share price gain to US$84.86, the stock is trading at a trailing P/E ratio of 5.6x, up from the previous P/E ratio of 4.8x. This compares to an average P/E of 9x in the Oil and Gas industry in the US. Total returns to shareholders over the past three years are 671%. Is New 90 Day High Low • Jan 07
New 90-day high: US$84.86 The company is up 41% from its price of US$60.16 on 08 October 2020. The American market is up 12% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Oil and Gas industry, which is up 29% over the same period. Is New 90 Day High Low • Dec 15
New 90-day high: US$64.83 The company is up 43% from its price of US$45.29 on 15 September 2020. The American market is up 10.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Oil and Gas industry, which is up 23% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is per share. Valuation Update With 7 Day Price Move • Dec 15
Investor sentiment improved over the past week After last week's 17% share price gain to US$64.83, the stock is trading at a trailing P/E ratio of 4.3x, up from the previous P/E ratio of 3.6x. This compares to an average P/E of 9x in the Oil and Gas industry in the US. Total returns to shareholders over the past three years are 471%. Is New 90 Day High Low • Nov 12
New 90-day high: US$63.60 The company is up 60% from its price of US$39.65 on 14 August 2020. The American market is up 6.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Oil and Gas industry, which is down 10.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is per share. Reported Earnings • Nov 07
Third quarter 2020 earnings released: EPS US$0.68 The company reported a decent third quarter result with improved earnings and profit margins, although revenues were weaker. Third quarter 2020 results: Revenue: US$576.1m (down 1.4% from 3Q 2019). Net income: US$26.8m (up US$40.6m from 3Q 2019). Profit margin: 4.7% (up from net loss in 3Q 2019). The move to profitability was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 67% per year whereas the company’s share price has increased by 68% per year. Price Target Changed • Oct 07
Price target raised to US$68.33 Up from US$60.33, the current price target is an average from 6 analysts. The new target price is 21% above the current share price of US$56.41. As of last close, the stock is up 266% over the past year. Is New 90 Day High Low • Sep 30
New 90-day high: US$50.02 The company is up 111% from its price of US$23.74 on 02 July 2020. The American market is up 8.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Oil and Gas industry, which is down 17% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is US$68.71 per share.