Helix Energy (HLX) shares ended the last trading session 9.8% higher at $5.85. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock’s 14.6% gain over the past four weeks.
Helix Energy extended its rally for the third straight day, driven by optimism over rising activity expected this year, which was delayed from 2020 due to the coronavirus pandemic, as pointed out in the latest investor conference. Moreover, its robotics business outlook presents significant upside potential, supported by multiple renewable projects.
The company announced that of the total backlog of $407 million, $301 million will likely be realized in 2021. Additionally, the anticipation of its total funded debt level to decrease to $314 million by 2021-end from $405 million at 2020-end has delighted investors.
Price and Consensus
This offshore oil and gas services contractor is expected to post quarterly loss of $0.06 per share in its upcoming report, which represents a year-over-year change of +57.1%. Revenues are expected to be $152.1 million, down 16% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Helix Energy, the consensus EPS estimate for the quarter has been revised 59.1% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on HLX going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank 3 (Hold). You can see
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