Bill Barrett Earnings: Here’s Why Investors Don’t Like These Results

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. Shares are down 1.79%.

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Bill Barrett Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased to $-0.25 in the quarter versus EPS of $0.20 in the year-earlier quarter.

Revenue: Decreased 22.82% to $138.3 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Bill Barrett Corp. reported adjusted EPS loss of $0.25 per share. By that measure, the company missed the mean analyst estimate of $0. It missed the average revenue estimate of $142.47 million.

Quoting Management: Chief Executive Officer and President Scot Woodall commented: “First quarter operations are on track with our full year plan. Further, we are pleased with advances we are making in both the Denver-Julesburg Basin (“DJ”) and Uinta Oil Program (“UOP”) to optimize well costs and performance. Given results to date and improvement in drilling and completion techniques, we are ready to increase the pace of drilling in the Northeast Wattenberg, which carries the best returns in our portfolio. Execution of our development plans in the DJ and UOP remain our top priority. We also remain committed to ending 2013 with no increase in our total debt. We will be actively managing our portfolio to generate proceeds from the sale of assets to meet our funding requirements, which we expect to complete in the second half of the year.”

Key Stats (on next page)…

Revenue decreased 23.08% from $179.8 million in the previous quarter. EPS decreased to $-0.25 in the quarter versus EPS of $0.20 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 $0.13 to a profit $0.10. For the current year, the average estimate has moved down from a profit of $0.60 to a profit of $0.52 over the last ninety days.

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

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