Quicksilver Resources Earnings: Here’s Why Shares are Up Now

Quicksilver Resources Inc. (NYSE:KWK) 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 up 7.28%.

Quicksilver Resources Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased to $-0.06 in the quarter versus EPS of $-0.13 in the year-earlier quarter.

Revenue: Decreased 30% to $118 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Quicksilver Resources Inc. reported adjusted EPS loss of $0.06 per share. By that measure, the company missed the mean analyst estimate of $-0.02. It missed the average revenue estimate of $125.83 million.

Quoting Management: “Quicksilver’s primary goal is to improve our balance sheet by completing transactions that highlight the value of our asset base,” said Glenn Darden, Quicksilver’s Chief Executive Officer. “In the last several months, we have made significant progress on this goal. We’ve sold assets for excellent value, brought in strong, long-term partners and secured financial flexibility through amending the company’s credit facility and refinancing bond debt. We will continue to execute our plan and clearly recognize that performance is the measure that really counts.”

Key Stats (on next page)…

Revenue decreased 0.59% from $118.7 million in the previous quarter. EPS increased to $-0.06 in the quarter versus EPS of $-0.04 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a loss of $0 to a loss $0.01. For the current year, the average estimate has moved down from a loss of $0.01 to a loss of $0.09 over the last ninety days.

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