Northern Oil and Gas Earnings: Here’s Why Investors are Happy Now

Northern Oil and Gas, Inc. (AMEX:NOG) 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 3.36%.

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Northern Oil and Gas, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 26.09% to $0.29 in the quarter versus EPS of $0.23 in the year-earlier quarter.

Revenue: Rose 34.4% to $67.9 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Northern Oil and Gas, Inc. reported adjusted EPS income of $0.29 per share. By that measure, the company beat the mean analyst estimate of $0.28. It missed the average revenue estimate of $83.2 million.

Quoting Management: “Despite typical first quarter weather, we were able to increase our quarterly sequential average daily production and add nearly ten net wells to producing status,” commented Northern’s Chairman and Chief Executive Officer Michael Reger. “Although road (load) restrictions in the second quarter may affect activity levels, we remain optimistic about our second half 2013 production profile due to pad drilling efficiencies and a more stable and predictable operating environment without the impact of weather or road (load) restrictions.”

Key Stats (on next page)…

Revenue decreased 16.94% from $81.75 million in the previous quarter. EPS decreased 14.71% from $0.34 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.30 and has not changed. For the current year, the average estimate has moved down from a profit of $1.32 to a profit of $1.28 over the last ninety days.

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