C&J Energy Services Earnings: Here’s Why the Stock is Falling Now

C&J Energy Services Inc (NYSE:CJES) delivered a profit 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 2.53%.

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C&J Energy Services Inc Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 50% to $0.46 in the quarter versus EPS of $0.92 in the year-earlier quarter.

Revenue: Rose 15.5% to $276.1 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: C&J Energy Services Inc reported adjusted EPS income of $0.46 per share. By that measure, the company missed the mean analyst estimate of $0.55. It missed the average revenue estimate of $288.31 million.

Quoting Management: Founder, Chairman and Chief Executive Officer Josh Comstock commented, “During the first quarter we encountered challenging conditions across the U.S. hydraulic fracturing market. The impact to our hydraulic fracturing operations was greatest over the latter part of the quarter, as our exposure to a weakened spot market increased due to lower utilization by contracted customers, who generally managed to the minimum contractual hours. The hydraulic fracturing market remains highly competitive with spot market pricing not expected to increase during the second quarter. ”

Key Stats (on next page)…

Revenue decreased 3.55% from $286.26 million in the previous quarter. EPS decreased 29.23% from $0.65 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 $0.71 to a profit $0.57. For the current year, the average estimate has moved down from a profit of $2.92 to a profit of $2.41 over the last ninety days.

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