Shares of Tesco Corp. (NASDAQ: TESO) touched a new 52-week high of $18.72 on Tuesday. The company Thursday reported higher fourth quarter earnings on positive momentum across all of its product lines and expects a stronger 2011. The positive results was seen in trading of Tesco stock that had reached a new high for third day in a row.
The Houston, Texas-based maker of drilling equipment for oil and gas producers reported fourth quarter earnings of $1.2 million or 3 cents a share, compared to a loss of $9.0 million or 24 cents a share last year.
The latest quarter results included a $2.2 million charge to operating income resulting from a customer dispute over contract term interpretations and a $1.6 million increase in income tax expense for valuation allowance adjustments established on certain foreign subsidiaries net operating losses.
Revenue grew to $114.2 million from $85.6 million. Analysts had expected profit of 11 cents a share, excluding items, on revenue of $96.75 million for the fourth quarter.
Segment-wise, revenue from top drive grew to $77.0 million from $53.8 million on growth in number of units sold, while tubular services revenue rose to $32.7 million from $29.1 million on higher proprietary service offerings in North America and almost all markets in Latin America. Casing drilling segment revenue rose to $4.5 million from $2.7 million on higher project activity in the Asia Pacific, Latin America and Middle East regions.
The company ended December 31, 2010 with cash and cash equivalents of $60.6 million, higher than last year's $39.9 million.
For 2011, the company expects capital expenditures of $55 million to $65 million, higher than 2010's expenditure of $38.5 million. The current outlook for the global economy varies widely, but the company expects that most indicators point towards a continued slow recovery in 2011.
The company forecasts worldwide number of wells drilled for 2011 to be 102,870, higher than 2010's 97,140. The company projects U.S. and Canadian activity to increase by 9 percent and international activity to grow by 2 percent from average 2010 levels.
Tesco stock gapped open sharply lower Friday at $16.19, compared to previous day Thursday's close of $16.39. But, the stock touched a new 52-week high of $18.04 during the Friday's trading session on a volume of 301,800 shares. On Monday, the stock surpassed Friday's high to reach a new 52-week high of $18.50 on a volume of 349,000 shares.
But on March 1, the stock surpassed Friday's high to reach a new 52-week high of $18.72. The stock closed Tuesday's regular trading up 0.91 percent at $18.56 with a volume of 450,000 shares on the NASDAQ stock market. The stock traded between $9.00 and $18.72 during the past 52-week.