Carrizo Oil & Gas Earnings: Here’s Why the Stock is Down Now

Carrizo Oil & Gas Inc. (NASDAQ:CRZO) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 1.42%.

Carrizo Oil & Gas Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 134.62% to $0.61 in the quarter versus EPS of $0.26 in the year-earlier quarter.

Revenue: Rose 60.1% to $134.2 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Carrizo Oil & Gas Inc. reported adjusted EPS income of $0.61 per share. By that measure, the company beat the mean analyst estimate of $0.53. It beat the average revenue estimate of $128.73 million.

Quoting Management: S.P. “Chip” Johnson, IV, Carrizo’s President and CEO, commented on the quarter’s results, “This was an outstanding quarter for Carrizo as we delivered production growth that significantly exceeded our forecast despite lower than planned capital expenditures.
“Our continued strategy of shifting the focus to oil production, rather than production of gas and NGLs, while delivering with asset sales, is paying off. During the quarter, we achieved a record EBITDA, and pushed our debt-to-EBITDA ratio to under 2.5x.
“In the near term, we are very excited about our downspacing tests in the Eagle Ford Shale and Niobrara Formation, and our first operated Utica Shale well. Positive results from these tests has the potential to significantly expand our drilling inventory.”

Key Stats (on next page)…

Revenue increased 19.93% from $111.9 million in the previous quarter. EPS increased 12.96% from $0.54 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.53 to a profit $0.63. For the current year, the average estimate has moved up from a profit of $2.02 to a profit of $2.34 over the last ninety days.

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