Linn Energy LLC Earnings: Here’s Why the Stock is Falling Now

Linn Energy, LLC (NASDAQ:LINE) 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 0.31%.

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Linn Energy, LLC Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 36% to $0.16 in the quarter versus EPS of $0.25 in the year-earlier quarter.

Revenue: Rose 4.24% to $369.1 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Linn Energy, LLC reported adjusted EPS income of $0.16 per share. By that measure, the company missed the mean analyst estimate of $0.24. It missed the average revenue estimate of $581.96 million.

Quoting Management: “While the company experienced a challenging operating environment in the first quarter, the high quality and depth of our inventory still gives us the ability to grow organic production nearly 10% in 2013. This production growth will allow the company to steadily increase its distribution coverage ratio throughout the year,” said Mark E. Ellis, Chairman, President and Chief Executive Officer.

Key Stats (on next page)…

Revenue decreased 35.39% from $571.23 million in the previous quarter. EPS decreased 60.98% from $0.41 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 $0.44 to a profit $0.29. For the current year, the average estimate has moved down from a profit of $1.79 to a profit of $1.64 over the last ninety days.

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