Love it or hate it, hydraulic fracturing (also called fraccing or fracking) is a part of life in the oil and gas business today. The easy oil and gas is largely gone in North America and producers like Exxon Mobil (NYSE:XOM), Chesapeake Energy (NYSE:CHK) and Apache (NYSE:APA) increasingly have to resort to more and more technology like fracking to meet their production targets. That has created a huge market for Carbo Ceramics (NYSE:CRR) and its ceramic proppants, but the question remains whether there is enough growth to fuel still more gains in the stock.
A Quiet Second Quarter
Carbo Ceramics did more or less what analysts expected it to do this quarter. Revenue was up 34% from last year, but down about 1% from the first quarter. While Carbo Ceramics saw better than 2% price growth from the first quarter, volume fell about 3%. Gross margins picked up a bit (40 basis points), but operating earnings still slid slightly from the first quarter.
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http://stocks.investopedia.com/stock-analysis/2011/Can-Drilling-Growth-Prop-Up-Carbo-Ceramics-CRR-BHI-SLB-HAL-CHK-KEG-FTK0805.aspx
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