Northern Oil & Gas Inc Third Quarter Earnings Sneak Peek

Northern Oil & Gas, Inc (NASDAQ:NOG) will unveil its latest earnings on Wednesday, November 9, 2011. Northern Oil & Gas is an independent energy company engaged in the acquisition, exploration, exploitation, and development of oil (NYSEARCA:USO) and natural gas (NYSE:UNG) properties.

Northern Oil & Gas, Inc Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 22 cents per share, a rise of more than twofold from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 28 cents. Between one and three months ago, the average estimate moved down. It also has dropped from 23 cents during the last month. Analysts are projecting profit to rise by 125.8% versus last year to 70 cents.

Past Earnings Performance: Last quarter, the company fell short of estimates by 7 cents, coming in at net income of 12 cents a share versus the estimate of profit of 19 cents a share. It was the fourth straight quarter of missing estimates.

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Wall St. Revenue Expectations: On average, analysts predict $46.1 million in revenue this quarter, a rise of more than fourfold from the year ago quarter. Analysts are forecasting total revenue of $161.6 million for the year, a rise of more than threefold from last year’s revenue of $44.6 million.

Analyst Ratings: Analysts are bullish on this stock with eight analysts rating it as a buy, none rating it as a sell and two rating it as a hold.

A Look Back: In the second quarter, profit rose more than threefold to $20.4 million (33 cents a share) from $6.1 million (12 cents a share) the year earlier, but fell short analyst expectations. Revenue rose more than twofold to $35.6 million from $16.2 million.

Key Stats:

Northern Oil & Gas’ profit last quarter followed losses in the previous two quarters. The company reported a loss of $7.1 million in the first quarter and a loss of $1.8 million in the fourth quarter of the last fiscal year.

Revenue rose in the second quarter after seeing a drop the quarter before. In the first quarter, revenue fell 65%.

The company’s gross margin shrank by 6.9 percentage points in the in the second quarter. Revenue rose 119.2% while cost of sales rose 273.8% to $5.9 million from a year earlier.

Competitors to Watch: Brigham Exploration Co. (NASDAQ:BEXP), Voyager Oil & Gas, Inc. (VOG), Oasis Petroleum Inc. (NYSE:OAS), Kodiak Oil & Gas Corp. (AMEX:KOG), GeoResources, Inc. (NASDAQ:GEOI), Encore Energy Partners LP (NYSE:ENP), Bill Barrett Corporation (NYSE:BBG), Gasco Energy, Inc. (AMEX:GSX), Delta Petroleum Corp. (NASDAQ:DPTR), and Earthstone Energy, Inc. (BSICD).

Stock Price Performance: During October 7, 2011 to November 4, 2011, the stock price had risen $7.89 (42%) from $18.79 to $26.68. It saw one of its worst periods between July 20, 2011 and July 28, 2011 when shares fell for seven-straight days, falling 10.2% (-$2.49) over that span. The stock price saw one of its best stretches over the last year between February 22, 2011 and March 4, 2011 when shares rose for nine-straight days, rising 19.1% (+$5.24) over that span. Shares are down 53 cents (-1.9%) year to date.

(Source: Xignite Financials)

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