Rex Energy Corp Third Quarter Earnings Sneak Peek

Rex Energy Corporation (NASDAQ:REXX) will unveil its latest earnings on Tuesday, November 6, 2012. Rex Energy is an independent energy company that is engaged in the acquisition, production, exploration and development of oil and gas, with properties primarily in the Appalachian and Illinois regions.

Rex Energy Corporation Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for net income of 5 cents per share, a decline of 64.3% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 6 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 5 cents during the last month. Analysts are projecting profit to rise by 44.4% versus last year to 25 cents.

Past Earnings Performance: Last quarter, the company missed estimates by 3 cents, coming in at profit of one cent per share versus a mean estimate of net income of 4 cents per share. In the first quarter, the company beat estimates by 4 cents.

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A Look Back: In the second quarter, profit rose 1438.4% to $52.9 million ($1 a share) from $3.4 million (8 cents a share) the year earlier, but fell short analyst expectations. Revenue rose 3.8% to $30.3 million from $29.2 million.

Wall St. Revenue Expectations: Analysts predict a rise of 25.1% in revenue from the year-earlier quarter to $38.6 million.

Stock Price Performance: Between September 5, 2012 and October 31, 2012, the stock price had risen $1.21 (10.1%), from $12.03 to $13.24. The stock price saw one of its best stretches over the last year between June 21, 2012 and July 3, 2012, when shares rose for nine straight days, increasing 26.2% (+$2.49) over that span. It saw one of its worst periods between April 2, 2012 and April 11, 2012 when shares fell for seven straight days, dropping 15% (-$1.65) over that span.

Key Stats:

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 82.9% in the third quarter of the last fiscal year, 60.3% in the fourth quarter of the last fiscal year and 44.5% in the first quarter before increasing again in the second quarter.

The upcoming earnings announcement is a chance for the company to build on positive results from last quarter. After taking losses in the third quarter of the last fiscal year, the fourth of the last fiscal year and the first quarter, the company finished in the black with income of $52.9 million in the second.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 0.73 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, a ratio less than one could indicate a company may have difficulty meeting current obligations. The company regressed in this liquidity measure from 0.94 in the first quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 23.9% to $76.7 million while assets decreased 3.6% to $56.1 million.

Analyst Ratings: With 13 analysts rating the stock a buy, none rating it a sell and none rating the stock a hold, there are indications of a bullish stance by analysts.

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

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