Bill Barrett Earnings: Here’s Why Investors are Ambivalent Now

Bill Barrett Corp. (NYSE:BBG) had a loss and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.

Bill Barrett Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased to $-0.19 in the quarter versus EPS of $-0.05 in the year-earlier quarter.

Revenue: Decreased 11.26% to $142.3 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Bill Barrett Corp. reported adjusted EPS loss of $0.19 per share. By that measure, the company missed the mean analyst estimate of $-0.01. It missed the average revenue estimate of $150.53 million.

Quoting Management: “Through the remainder of 2013, our operations focus will be redirected to the Northeast Wattenberg, with the planned Uinta Oil drilling program nearly completed for the year. Four rigs will be active in the Northeast Wattenberg later this month, slightly delayed from original expectations. As a result, our capital expenditure guidance for 2013 is reduced by $25 million at the mid-point. In conjunction with the timing of well completions in the Northeast Wattenberg as well as performance of certain wells in the Uinta Oil Program, we are also reducing our production forecast for 2013 by 4% at the mid-point. Of note, the production impact in the Uinta Oil Program stems from various causes, including testing new completion concepts in the area that did not meet expectations. The number of future drilling locations in the area is not affected, and the area continues to be a major oil resource. We remain committed to capital discipline and completing an asset divestiture as part of our portfolio management program. This activity is well underway, and we are confident that we are on track to complete a transaction by year-end.

Key Stats (on next page)…

Revenue increased 2.91% from $138.28 million in the previous quarter. EPS decreased to $-0.19 in the quarter versus EPS of $-0.25 in the previous quarter.

Looking Forward: 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 $0.17 to a profit $0.09. For the current year, the average estimate has moved down from a profit of $0.48 to a profit of $0.03 over the last ninety days.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

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

More Articles About:   , , , ,  

More from The Cheat Sheet