PetroQuest Energy Earnings: Here’s Why Shares are Down Now

PetroQuest Energy Inc. (NYSE:PQ) 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 2.51%.

PetroQuest Energy Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased to $0.06 in the quarter versus EPS of $-0.01 in the year-earlier quarter.

Revenue: Rose 14.04% to $38.1 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: PetroQuest Energy Inc. reported adjusted EPS income of $0.06 per share. By that measure, the company missed the mean analyst estimate of $0.07. It missed the average revenue estimate of $40.26 million.

Quoting Management: “With the closing of the Gulf of Mexico acquisition in July, we view the third quarter of 2013 as an inflection point in our oil production and associated cash flow. We have taken advantage of the recent rally in crude prices by layering in multiple hedging contracts at more attractive prices than we used in our valuation of the assets,” said Charles T. Goodson, Chairman, Chief Executive Officer and President.” On a pro forma basis, the acquired assets would have provided a 60% increase to our first quarter 2013 EBITDA on daily production of 967 barrels of oil and 19 MMcfe of gas. Over the next several weeks, we expect to increase oil production from the acquired assets to 2,100 barrels per day, which should translate into a material cash flow contribution.”

Key Stats (on next page)…

Revenue increased 5.8% from $36.01 million in the previous quarter. EPS increased 20% from $0.05 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 $0.06 to a profit $0.10. For the current year, the average estimate has moved up from a profit of $0.27 to a profit of $0.39 over the last ninety days.

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