(GEOI) GeoReseources Incorporated – Bullish 51% Growth Projection

January 26th, 2010

GeoReseources, Inc. (GEOI) recently hit a new 52-week high on rising estimates and the company’s strong Q3 results from early November.

Company Description

GeoResources, Inc. operates as an independent oil and gas company involved in the production and exploration of crude and natural gas in Texas, Louisiana, Oklahoma, Montana and North Dakota. The company was founded in 2004 and has a market cap of $216 million.

Third-Quarter Results

With energy prices remaining in elevated territory, GeoResources produced strong Q3 results that easily beat expectations. Revenue was mostly flat from last year at $23 million, but earnings came in better than expected at 21 cents per share, 6 cents ahead of the Zacks Consensus Estimate.

The company’s results were driven by higher selling prices and significant production increases, with natural gas production up 132% and crude up 27% from last year.

Estimates Rising

Estimates have been on the rise for the last few months, with the current year up 16 cents to 78 cents per share. The next-year estimate is up 26 cents in the same time to $1.18 per share, a bullish 51% growth projection.

Valuation

As it stands, shares of GEOI are trading with a forward P/E multiple of 17X, in line with the overall market.

The Chart

GEOI has been on a nice up trend for most of the last 10 months after bottoming out with the market in early March, More recently, shares hit a new 52-weke high before pulling back a bit. Take a look below.

Michael Vodicka is the Momentum Stock Strategist for Zacks.com. He is also the Editor in charge of the market-beating Zacks Surprise Trader Service.

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(GEOI) GeoReseources Incorporated – Bullish 51% Growth Projection

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