Energy XXI (Bermuda) Limited (NASDAQ:EXXI) 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 up 4.94%.
Energy XXI (Bermuda) Limited Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased 18.18% to $0.72 in the quarter versus EPS of $0.88 in the year-earlier quarter.
Revenue: Decreased 8.09% to $314.3 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Energy XXI (Bermuda) Limited reported adjusted EPS income of $0.72 per share. By that measure, the company beat the mean analyst estimate of $0.46. It missed the average revenue estimate of $315.98 million.
Quoting Management: “Fiscal 2013 was a good year in terms of better defining our portfolio’s opportunity set, including the upside of horizontal drilling, which contributed to the previously announced 50 percent growth in proved reserves,” Energy XXI Chairman and CEO John Schiller said. “We continue to see excellent results from our oil-focused drilling program. Our fiscal 2014 capital program is designed to generate free cash flow while increasing production. If full-year production averages the current rate of about 47,000 BOE/d, volumes will increase 10 percent year over year.”
Key Stats (on next page)…
Revenue increased 3.47% from $303.77 million in the previous quarter. EPS increased 63.64% from $0.44 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 $0.54 to a profit $0.51. For the current year, the average estimate has moved up from a profit of $1.72 to a profit of $1.74 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)