Vanguard Natural Resources Earnings: Here’s Why the Stock is Up Now

Vanguard Natural Resources, LLC (NYSE:VNR) 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 up 0.49%.

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Vanguard Natural Resources, LLC Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 36.59% to $0.26 in the quarter versus EPS of $0.41 in the year-earlier quarter.

Revenue: Rose 18.81% to $67.41 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Vanguard Natural Resources, LLC reported adjusted EPS income of $0.26 per share. By that measure, the company missed the mean analyst estimate of $0.27. It missed the average revenue estimate of $112.95 million.

Quoting Management: Mr. Scott W. Smith, President and CEO, commented, “Our operating results this quarter were in line with our expectations and we were very pleased to see several capital projects occur earlier than we had initially forecasted. This will accelerate the benefits of these projects which should help drive distributable cash flow growth for the year. With the recent improvement in natural gas prices, it would seem that our decision in 2012 to make substantial investments in natural gas oriented acquisitions was a wise one. We are fortunate to have a large inventory of high quality drilling opportunities to develop this year and into the future.”

Key Stats (on next page)…

Revenue decreased 39.1% from $110.69 million in the previous quarter. EPS decreased 3.7% from $0.27 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 $0.32 to a profit $0.34. For the current year, the average estimate has moved down from a profit of $1.52 to a profit of $1.35 over the last ninety days.

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