To think the post before this one was my 1,000th since joining the site. I would have had more fanfare if I had realized. But then the best tribute I can make is to march onward with the good work.
BAS reported earnings last night of $0.06 a share – $0.13 excluding one time items. So far this morning, BAS is gapping down 10% (and counting).
This is honestly a pretty good showing. They lost $0.10 a share last quarter, so they swung $0.23 cents into profits.
The company has grown revenues 12% from this time last year. Revenues are 8.5% higher from last quarter.
At the moment, the CEO is anticipating another 4-6% lift in revenues in the third quarter. That should be good for another $3-4 million in profits for shareholders, so I’d expect earnings to lift another $0.20 or so at the next report. That would put us at ~$1.30 annually with a full quarter left to go in 2014.
Beyond that, I see more shareholder value being unlocked as the cost of capital continues to come down and natural gas adoption progresses.
The stock is cratering this morning on profit taking (it’s priced pretty fairly right now, in line with the rest of the market), but I’d guess it recovers soon enough. We’re on track to make that $1.60 annually I mentioned, and the $2.50-3.00 surprise I also hoped for is not out of the question. Barring some sort of major stumble, the stock should be in the vicinity of $35 by Christmas.
After all, if they keep this tempo, they’re at $2.00 yearly earnings by the start of 2015.
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do you anticiapte them to start paying a dividend?
Good question. Not yet, there’s still a much larger return for them to reinvest earnings. Debt can be paid down or rolled over, and demand for their services is very strong.
However, by 2016 or 2017, I would expect BAS to have a 1-2% dividend. This would be a measure of success.
Looking to buy back BAS after it settles. Any thoughts on RICE?
instead of adding to BBEP i bought shares of BAS for $24.59