Enerflex Ltd (EFXT) stock surged 5.32% in intraday trading on Friday, driven by the company's impressive third-quarter 2024 financial results and a significant increase in its quarterly dividend.
The energy services company reported strong operational performance in Q3, with solid execution across its business lines. Enerflex's adjusted earnings per share of $0.24 surpassed analyst estimates of $0.01, despite revenue of $601 million slightly missing expectations of $605 million.
Highlights from the company's Q3 performance included:
Enerflex's strong financial discipline was reflected in its reduced leverage, now within the target range of 1.5x to 2.0x. Moreover, the company announced a 50% increase in its quarterly dividend to CAD0.0375 per share, demonstrating its commitment to enhancing shareholder returns.
The positive stock movement was further buoyed by RBC's decision to raise its price target on Enerflex to $12 from $9, while maintaining an Outperform rating on the stock.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.