QEP Resources Earnings: A Swing Down to a Loss, Falling Below Estimates

S&P 500 (NYSE:SPY) component QEP Resources Inc. (NYSE:QEP) reported its results for the third quarter. QEP Resources is an energy company that explores and develops natural gas, oil and natural gas liquids.

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QEP Resources Inc. Earnings Cheat Sheet

Results: Reported a loss of $3.1 million (2 cents per diluted share) in the quarter. QEP Resources Inc. had a net income of $101.5 million or 57 cents per share in the year-earlier quarter.

Revenue: Fell 38.4% to $542.4 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: QEP Resources Inc. reported adjusted net income of 19 cents per share. By that measure, the company fell short of mean estimate of 35 cents per share. It fell short of the average revenue estimate of $740.3 million.

Quoting Management: “QEP achieved a number of significant accomplishments in the third quarter of 2012,” said Chuck Stanley, Chairman, President and CEO of QEP Resources. “QEP Energy’s third quarter production increased to a new record, up 15% compared to last year. The record production was driven by an increase in crude oil and NGL volumes that were both up over 50% from a year ago. Crude oil and NGL represented 21% of QEP Energy’s total production volumes in the third quarter, up from 15% a year ago.”

Key Stats:

The company has now fallen short of analyst estimates for the last three quarters. It missed the mark by one cent in the second quarter and by 3 cents in the first quarter.

Looking Forward: Analysts appear increasingly optimistic about the company’s results for the next quarter. The average estimate for the fourth quarter has moved up from 40 cents a share to 44 cents over the last ninety days. Over the past three months, the average estimate for the fiscal year has climbed from $1.48 per to share to $1.51.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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