GeoResources Inc. Earnings Cheat Sheet: Boosts Topline Growth

GeoResources, Inc. (NASDAQ:GEOI) reported net income above Wall Street’s expectations for the third quarter. GeoResources is an independent oil and gas company, which is engaged in the acquisition and development of oil and gas reserves.

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GeoResources Earnings Cheat Sheet for the Third Quarter

Results: Net income for GeoResources, Inc. rose to $9.4 million (36 cents per share) vs. $7.6 million (38 cents per share) in the same quarter a year earlier. This marks a rise of 23.3% from the year earlier quarter.

Revenue: Rose 41.4% to $37.1 million from the year earlier quarter.

Actual vs. Wall St. Expectations: GEOI beat the mean analyst estimate of 33 cents per share. It beat the average revenue estimate of $32.3 million.

Quoting Management: Frank A. Lodzinski, President and CEO of GeoResources, Inc. commented, “Over the past four and a half years, since gaining control over GeoResources, we have persevered through numerous challenges affecting the energy sector including difficult financial markets, volatile commodity prices, challenging weather conditions and increasing service costs. Nevertheless, we have consistently generated solid financial results and have delivered on everything we have told the markets.”

Key Stats:

The company has now seen net income rise in three straight quarters. In the second quarter, net income rose 99.5% and in the first quarter, the figure rose 3.9%.

Revenue has risen the past four quarters. Revenue increased 24.7% to $30.3 million in the second quarter. The figure rose 10.8% in the first quarter from the year earlier and climbed 6.4% in the fourth quarter of the last fiscal year from the year-ago quarter.

The company has now beaten estimates the last two quarters. In the second quarter, it topped expectations with net income of 31 cents versus a mean estimate of net income of 29 cents per share.

Looking Forward: Over the past ninety days, the average estimate for the fourth quarter has fallen from 44 cents per share to 37 cents, indicating that analysts are growing pessisimistic about the company’s performance next quarter. For the fiscal year, the average estimate has moved down from $1.39 a share to $1.30 over the last ninety days.

Competitors to Watch: Resolute Energy Corp (NYSE:REN), Brigham Exploration Co. (NASDAQ:BEXP), QEP Resources, Inc. (NYSE:QEP), Continental Resources, Inc. (NYSE:CLR), Oasis Petroleum Inc. (NYSE:OAS), Encore Energy Partners LP (NYSE:ENP), Warren Resources, Inc. (NASDAQ:WRES), Devon Energy Corporation (NYSE:DVN), Double Eagle Petroleum Co. (NASDAQ:DBLE), and Earthstone Energy, Inc. (BSICD).

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

 

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