C&J Energy Services Earnings: Here’s Why Investors Don’t Like These Results

C&J Energy Services Inc (NYSE:CJES) delivered a profit and beat Wall Street’s expectations, BUT 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 0.21%.

C&J Energy Services Inc Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 61% to $0.39 in the quarter versus EPS of $1.00 in the year-earlier quarter.

Revenue: Decreased 4.09% to $267 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: C&J Energy Services Inc reported adjusted EPS income of $0.39 per share. By that measure, the company beat the mean analyst estimate of $0.37. It missed the average revenue estimate of $273.28 million.

Quoting Management: Founder, Chairman and Chief Executive Officer Josh Comstock commented, “We generated solid margins across our business lines as we benefitted from the combined effect of strong performance under legacy term contracts, continued operating efficiencies and judicious cost management. During the quarter, we successfully reduced costs through a number of initiatives, such as disciplined procurement, distribution management and self-sourcing materials to meet our internal needs. Despite the highly competitive environment, which has impacted pricing and activity levels, we have continued to generate significant cash flow. We have reinvested in the growth of our company as we execute on our strategy to diversify our service offerings and expand geographically. In the second quarter, we advanced vertical integration, enhanced our research and technology capabilities, increased our engineering and sales forces and broadened our operational reach.”

Key Stats (on next page)…

Revenue decreased 0% from $0 in the previous quarter. EPS decreased 15.22% from $0.46 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 $0.58 to a profit $0.36. For the current year, the average estimate has moved down from a profit of $2.34 to a profit of $1.58 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)