Kodiak Oil Earnings: Here’s Why the Stock is Falling Now

Kodiak Oil (AMEX:KOG) 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 0.81%.

Kodiak Oil Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 70% to $0.17 in the quarter versus EPS of $0.10 in the year-earlier quarter.

Revenue: Rose 102.25% to $173.47 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Kodiak Oil reported adjusted EPS income of $0.17 per share. By that measure, the company beat the mean analyst estimate of $0.13. It missed the average revenue estimate of $180.28 million.

Quoting Management: Commenting on recent developments, Kodiak’s Chairman and CEO Lynn Peterson said: “While we are providing the initial production rates from our Polar downspacing project, it is still too early to project the ultimate outcome of our study. We are encouraged that we did not see significant communication between wells during the stimulation procedures which should bode well for tighter spacing, but caution that we need additional production data and information from our micro seismic and core evaluation work. We intend to update our shareholders as we gain sufficient data. We believe the work being performed by our entire team should result in continued growth in production, cash flow and reserves for our shareholders and we are very excited for the second half of 2013.”

Key Stats (on next page)…

Revenue increased 5.1% from $165.05 million in the previous quarter. EPS increased 54.55% from $0.11 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 $0.19 to a profit $0.2. For the current year, the average estimate has moved down from a profit of $0.71 to a profit of $0.67 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)