HP - Helmerich & Payne -

Helmerich & Payne, Inc. (HP) is scheduled to announce second-quarter results on May 1, 2008. This Growth & Income pick performed well in the past, hitting 52-week highs and currently trades near that level. The company announced solid fiscal first quarter results in late January, noting that operating income for the quarter reached a new record level. HP is yielding 0.4% while the majority of the companies in the oil and gas drilling industry do not pay out a dividend.

Full Analysis

Helmerich & Payne, Inc. is primarily a contract drilling company, engaging in the contract drilling of oil and gas wells in the United States and internationally. The company provides drilling rigs, equipment, personnel, and camps on a contract basis to explore for and develop oil and gas from onshore areas and from fixed platforms, tension-leg platforms, and spars in offshore areas.

Growth

This Growth & Income pick exhibits growth both technically and fundamentally. On the technical side, HP’s share price has been steadily rising since the company was last featured on March 28, 2008. Then HP’s share price was trading near a 52-week high and has broken through that level since, currently trading near a new 52-week high .

Regarding fundamental growth, Helmerich & Payne announced solid fiscal first quarter results in late January. HP noted that operating income for the quarter reached a new record level, adding that its continued growth was driven by the U.S. land segment, where revenue days as well as average daily rig revenue and margins were up again sequentially. The strong results more than offset operating income reductions in the company's offshore and international land segments.

The company delivered quarterly earnings per share that exceeded Wall Street estimates by about 5%, and projections for the future are on the rise. Full-year 2008 forecasts have been increased ahead of the company’s second-quarter report, which is scheduled for release on May 1, 2008. Current projections of $4.13 per share are above last month’s $4.11. The most accurate estimate is more bullish $4.24.

Income

In addition to growth, HP stands out in its industry by also offering income. It is yielding 0.4% while the majority of the companies in the oil industry do not pay out a dividend.

Content Courtesy: Zacks Investment Research

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