Approach Resources, Inc. (NASDAQ:AREX) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 0.02%.
Approach Resources, Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased 40% to $0.06 in the quarter versus EPS of $0.10 in the year-earlier quarter.
Revenue: Rose 18.45% to $36.27 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Approach Resources, Inc. reported adjusted EPS income of $0.06 per share. By that measure, the company beat the mean analyst estimate of $0.02. It missed the average revenue estimate of $37.61 million.
Quoting Management: J. Ross Craft, the Company’s President and CEO, commented, “We are encouraged by the improvement in our per-unit costs this quarter compared to fourth quarter 2012. In addition, we continue to see our horizontal well costs trend lower. Horizontal drilling and completion costs for first quarter 2013 averaged approximately $6.1 million per well, down from $6.4 million for the second half of 2012. We’re also encouraged by the initial results from our stacked wellbore pilot program and from our ongoing development in the horizontal Wolfcamp shale play. We plan to continue testing multi-bench development in Project Pangea, including testing optimal well spacing and drilling pattern, to maximize recoveries, efficiencies and savings.”
Key Stats (on next page)…