Kaneb Services (NYSE:KAB) gave us a big "earnings surprise" at the end
of last week, and the stock is beginning to move up strongly.
KAB reported earnings 0f $.06 per share for the fourth quarter of 1996.
The three analysts who are following the Company were each expecting
only $.04 per share.
Zacks Investment Service reports that KAB is the top ranked stock in the
Oil Production/Pipeline Segment out of 33 stocks followed in that
segment. The three securities analysts who follow the Company all give it
a "Strong Buy" rating, and they are projecting 1997 earnings per share to
reach $.30, a 58% increase over 1996.
For 1996, net income grew 86% to reach $6.5 million, after adjusting for
non-recurring items in the prior year. Revenues reached $229 million, a
8% increase. Cash flows for the year were equally strong, allowing the
Company to retire a substantial amount of debt and implement a stock
buy-back program.
Kaneb Services provides specialized industrial services to a wide range of
industries, including petroleum refineries, chemical plants, offshore
energy production platforms, steel mills, power generation and other
process industries in more than 20 countries, and also manages and
operates a network of petroleum pipelines and terminals, making it the
third largest independent liquids terminaling operation in the
United States.
The Napeague Letter has just begun following Kaneb Services. If you
would like a copy of its in-depth Analysis of Kaneb Services, and to be
added to its free subscription list, please e-mail a request to me at
rmdavis1@ix.netcom.com. This is a free subscription. No one will try to
sell you anything and this subscription list will not be used for any other
purposes. |
