Continental Resources Earnings: Revenues and Net Income Fall

Continental Resources Inc. (NYSE:CLR) posted a decrease in profit as revenue declined. Continental Resources is an independent crude oil and natural gas exploration and production company with operations in the North, South, and East regions of the United States.

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Continental Resources Earnings Cheat Sheet for the Third Quarter

Results: Net income for Continental Resources Inc. fell to $44.1 million (24 cents per share) vs. $439.1 million ($2.44 per share) a year earlier. This is a decline of 90% from the year-earlier quarter.

Revenue: Fell 50.1% to $483.7 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Continental Resources Inc. reported adjusted net income of 87 cents per share. By that measure, the company fell in line with the mean estimate of 87 cents per share. It fell short of the average revenue estimate of $545.5 million.

Quoting Management: “We expect to achieve 2012 production growth guidance of 57 percent to 59 percent,” said Harold Hamm, Chairman and Chief Executive Officer. “Other positive trends we expect to continue are reduced drilling and completion cycle times and low production costs. “2013 is shaping up as another year of production growth with efficiency gains,” Mr. Hamm said. “We expect 30-to-35 percent production growth next year, the first year in our new five-year plan aimed at tripling production and proved reserves.”

Key Stats:

After missing the mark in the previous two quarters, the company met analyst estimates. In the second quarter, it fell short by 5 cents, and in the first quarter, it was under-estimate by 8 cents.

Looking Forward: For next quarter, analysts have a more positive outlook about the company’s expected results. The average estimate for the fourth quarter is 95 cents per share, up from 88 cents ninety days ago. At $3.27 per share, the average estimate for the fiscal year has risen from $3.18 sixty days ago.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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