Furmanite Corp: Accentuating the positive
Spreading joy up to the maximum and bringing gloom down to the minimum: that’s the goal of Furmanite Corp. (NYSE:FRM). It’s been a profitable mission, too: the industrial services company just reported a pipeline of profits in its second quarter, strength that — barring a global recession — should continue for some time to come.
Dallas, Texas-based Furmanite focuses on maintaining high-pressure piping systems, of which leak sealing is a specialty. Its global technical and field services are for offshore drillers, pipelines, refineries and power generators, as well as chemical and petrochemical plants and other industries.
Furmanite is all about maximizing uptime and keeping downtime to a minimum, accentuating the positive and eliminating — or at least minimizing — the negative. It’s been in the pipe-fixing game for 80 years and is now reaping heady profits as high oil prices encourage capital spending by refiners and as other global industries invest in stressed-out infrastructure. Its strong financial performance is one affirmative; its global presence another.
In the quarter ended June 30, the company doubled earnings per share, reporting $0.21 compared with $0.11 in the previous year’s second quarter. Revenues rose 21% to $90 million. For fiscal 2008, the average of three analysts puts earnings at $0.59, up 69% from $0.35 in 2007. Revenues are seen at $335.27 million, up 16%.
“In short, the demand for pipeline repair and monitoring services is about as robust as it has ever been,” wrote analyst Richard Nelson of Jesup and Lamont in early August, after the second-quarter results. Nelson raised his target to $12.50 from $10.50 and repeated his “buy” rating. Furmanite settled Friday at $11.56, at the high end of its 52-week range from $7.40 to $13.
Furmanite’s growth enhances its competitiveness and suggests long-term growth is achievable, Nelson said. The company now has 70 service centers worldwide; . . .
Dallas, Texas-based Furmanite focuses on maintaining high-pressure piping systems, of which leak sealing is a specialty. Its global technical and field services are for offshore drillers, pipelines, refineries and power generators, as well as chemical and petrochemical plants and other industries.
Furmanite is all about maximizing uptime and keeping downtime to a minimum, accentuating the positive and eliminating — or at least minimizing — the negative. It’s been in the pipe-fixing game for 80 years and is now reaping heady profits as high oil prices encourage capital spending by refiners and as other global industries invest in stressed-out infrastructure. Its strong financial performance is one affirmative; its global presence another.
In the quarter ended June 30, the company doubled earnings per share, reporting $0.21 compared with $0.11 in the previous year’s second quarter. Revenues rose 21% to $90 million. For fiscal 2008, the average of three analysts puts earnings at $0.59, up 69% from $0.35 in 2007. Revenues are seen at $335.27 million, up 16%.
“In short, the demand for pipeline repair and monitoring services is about as robust as it has ever been,” wrote analyst Richard Nelson of Jesup and Lamont in early August, after the second-quarter results. Nelson raised his target to $12.50 from $10.50 and repeated his “buy” rating. Furmanite settled Friday at $11.56, at the high end of its 52-week range from $7.40 to $13.
Furmanite’s growth enhances its competitiveness and suggests long-term growth is achievable, Nelson said. The company now has 70 service centers worldwide; . . .
For access to the full article, you must be a registered member - it's FREE.
Already a member? Please log in below
Not Registered?
Register today and enjoy all that SmallCapInvestor.com has to offer, including:
- Daily small cap stock profiles.
- Intra-day coverage of Russell 2000 companies.
- Research and insights from our analysts.
- Special reports.
