EPS & Earnings ... Hits & Misses

[madrose1]

* GRP $39~41~$42 Grant Prideco reports Q4; beat on revs; guides FY07 EPS above consensus (39.51 +0.05) *****

Reports Q4 (Dec) earnings of $0.97 per share, excl $0.10 tax benefit, but incl a $3.9 mln gain offset by $3.1 mln in charges, may not be comparable may not be comparable to the Reuters Estimates consensus of $0.94; revenues rose 33.3% year/year to $518.1 mln vs the $502.9 mln consensus. Co issues upside guidance for FY07, sees EPS of $3.90-4.00 vs. $3.86 consensus. Co says, "Looking forward, our Drilling Products and Services and ReedHycalog segments are expected to have continued growth in 2007. International business and new products in our Tubular Technology and Services are expected to remain strong through 2007, although we are expecting a further softening of our domestic premium connections and tubular processing businesses during Q1. We are currently forecasting relatively flat worldwide drilling activity levels during 2007, with a softening Canadian market offset by an increase in the international rig count. We are forecasting U.S. drilling activity to be similar to 2006, with the possibility of a small decrease should commodity prices weaken further."