Swift Energy Earnings: Here’s Why Investors are Selling Shares Now

Swift Energy Co. (NYSE:SFY) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 4.16%.

Swift Energy Co. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 114.29% to $0.15 in the quarter versus EPS of $0.07 in the year-earlier quarter.

Revenue: Rose 5.74% to $142.5 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Swift Energy Co. reported adjusted EPS income of $0.15 per share. By that measure, the company beat the mean analyst estimate of $0.09. It beat the average revenue estimate of $142.18 million.

Quoting Management: Terry Swift, CEO of Swift Energy commented, “Our performance in the prolific Eagle Ford shale trend in South Texas continues to improve according to our plans. When compared to 2012, our 2013 South Texas well results have delivered higher initial production rates, larger estimated ultimate recoveries (“EURs”) and lower costs. Additionally, during July our average daily production rate in our South Texas core area was approximately 10% higher than our second quarter 2013 average production rate. Based on this performance, and following an extensive asset review, we plan to sell our Central Louisiana assets to increase our focus and build upon the operational success of our more predictable assets in South Texas. We expect a disposition of these assets to occur within the next 6-12 months.”

Key Stats (on next page)…

Revenue decreased 2.56% from $146.24 million in the previous quarter. EPS decreased 6.25% from $0.16 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 profit of $0.14 to a profit $0.12. For the current year, the average estimate has moved down from a profit of $0.63 to a profit of $0.61 over the last ninety days.

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