Stone Energy Corp.

Company Description

Stone Energy Corporation operates as an energy explorer in the Gulf of Mexico and Appalachia region. The company was founded in 1993 and has a market cap of $470 million.

Stone Energy is up huge over the last 4 months, taking off with the equity and energy markets. The company's strong second-quarter results, reported on July 30, were far better than expected, giving its share price a nice pop.

Second-Quarter Results

Earnings came in at 65 cents per share, far ahead of the Zacks Consensus Estimate of 10 cents. Operating revenue was down from last year to $170.3 million.

Stone added that its daily production volumes were up 9% from last year and expects additional growth into the third quarter.

Estimates Spike

Estimates are up big over the last 90 days, helped by higher energy prices and the good quarter. The current year is up $1.25 per share to 53 cents per share. The next-year estimate is projecting 13% earnings growth.

Valuations

Based on the current-year estimate, this stock has a P/E multiple of 22X, a premium to the overall market.

The Chart

Shares of SGY have been on a big-time rally for the last months in response to higher energy prices and general economic optimism. Take a look at the bug move below.