Oxford Resource Partners L.P. Earnings: Here’s Why the Stock is Down Now

Oxford Resource Partners, L.P. (NYSE:OXF) had a loss 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 6%.

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Oxford Resource Partners, L.P. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased to $-0.29 in the quarter versus EPS of $-0.24 in the year-earlier quarter.

Revenue: Decreased 11.62% to $86.5 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Oxford Resource Partners, L.P. reported adjusted EPS loss of $0.29 per share. By that measure, the company missed the mean analyst estimate of $-0.13. It missed the average revenue estimate of $88.9 million.

Quoting Management: “We continue to focus on our core Northern Appalachian operations where we have a very strong committed sales position for 2013 and where we have achieved productivity improvements. While coal market conditions continue to be challenging, the year is off to a solid start with first quarter performance expected to show improvement over the fourth quarter,” said Oxford’s President and Chief Executive Officer Charles C. Ungurean. “We also have the ability to increase production with little incremental cost when market demand strengthens. In the meantime, based on current market conditions, we expect to idle production and conclude restructuring activities at our Illinois Basin operations by year end, while pursuing additional measures to improve our liquidity, including refinancing of our credit facility, further cost cuts and non-core asset sales.”

Key Stats (on next page)…

Revenue decreased 11.02% from $97.21 million in the previous quarter. EPS decreased to $-0.29 in the quarter versus EPS of $-0.14 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 loss of $0.16 and has not changed. For the current year, the average estimate is a loss of $0.66, which is the same with that ninety days ago.

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