Up 15% at the time of writing, the Bristow Group (NYSE:BRS) penny stock is making a comeback after what has been a tough week for these shares.
BRS stock dropped from $3.08 to $2.16 on February 11th. The reason? Investors learned the company was backing out of a planned acquisition. It didn’t stop here though.
It then notified the SEC that it will be late in filing its Q3 earnings report. The developments caused the stock to suffer.
Penny Stocks: Bristow Group
The aviation service provider announced that it was terminating a deal to acquire Columbia Helicopter. Servicing the offshore oil and gas industry, the Columbia acquisition would have “expanded the company’s customer base geographically and by industry.”
However, the termination was mutual between the two companies. Both companies had made significant developments since they struck the original deal. They came to the conclusion that the time was simply not right for a merger.
Bristow Group paid a $20 million break-up fee, and the $560 million deal has been officially called off.
The deal, announced in November, was expected to close by the end of 2018.
Will Q3 Results Help the BRS Penny Stock?
In a separate press release on February 11th, Bristow notified the US SEC that it would be late in filing its most recent Q3 report.
It was late, but investors still got what they needed. According to Yahoo Finance:
“Bristow Group (BRS) came out with a quarterly loss of $0.57 per share versus the Zacks Consensus Estimate of a loss of $0.59. This compares to a loss of $0.52 per share a year ago […] This quarterly report represents an earnings surprise of 3.39%. A quarter ago, it was expected that this helicopter services company that caters to the offshore energy industry would post a loss of $0.69 per share when it actually produced a loss of $0.78, delivering a surprise of -13.04%.”
BRS stock dropped close to 30% after both announcements and has since hit a low of $1.11 USD yesterday.
But now the BRS penny stock is rallying again, up 15% on the day and selling for $1.38 at the time of writing.
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