Approach Resources Earnings Preview: Can This Streak Finally End?

Approach Resources (NASDAQ:AREX) will report earnings after markets close on Thursday, May 2nd. Approach Resources Inc explores for and produces natural gas and crude oil.

Here is your Cheat Sheet to Approach Resources Earnings:

Earnings Expectations: Analysts expect earnings of $0.01 per share on revenues of $37.00 million. Currently, the company’s P/E ratio stands at 130.28.

Analyst Trends:

Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.11 to a profit $0.06. For the current year, the average estimate is a profit of $0.32, which is worse than the estimate ninety days ago.

Earnings Trends:

Here’s how Approach Resources has been performing on an annual basis:

Fiscal Year 2008 2009 2010 2011 2012
Revenue ($) in millions 79.87 40.65 57.58 108.39 128.89
Diluted EPS ($) 1.12 -0.25 0.34 0.25 0.18

Next, our CHEAT SHEET investing framework asks us to drill down to the recent quarterly data:

Quarter Dec. 31, 2011 Mar. 31, 2012 Jun. 30, 2012 Sep. 30, 2012 Dec. 31, 2012
Revenue ($) in millions 31.12 30.62 29.93 33.04 35.31
Diluted EPS ($) -0.3041 0.05 0.23 -0.07 -0.0215

Past Performance:
Approach Resources has missed analyst estimates 4 times in the past four quarters. Shareholders could expect a bust if the company misses estimates.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at]