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

Warren Resources Inc. (NASDAQ:WRES) delivered a profit and beat Wall Street’s expectations, BUT 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 1%.

Warren Resources Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 85.71% to $0.13 in the quarter versus EPS of $0.07 in the year-earlier quarter.

Revenue: Rose 1.72% to $30.7 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Warren Resources Inc. reported adjusted EPS income of $0.13 per share. By that measure, the company beat the mean analyst estimate of $0.06. It missed the average revenue estimate of $31.44 million.

Quoting Management: Philip A. Epstein, Chairman and Chief Executive Officer, commented, “I am encouraged by our improving production volumes and oil and gas revenues compared to the second quarter of 2012. This increase resulted primarily from a 29% increase in gas production and higher gas prices due, in part, to Warren’s Rocky Mountain acquisition activities. On the oil side, after some operational issues that were resolved earlier in the quarter, Warren’s production from our two Wilmington Field units has steadily grown from 3,439 gross barrels of oil per day (“BOPD”) at March 31, 2013 to 3,892 gross BOPD at June 30, 2013.”

Key Stats (on next page)…

Revenue decreased 0.39% from $30.82 million in the previous quarter. EPS increased 116.67% from $0.06 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 $0.09 to a profit $0.07. For the current year, the average estimate has moved down from a profit of $0.30 to a profit of $0.26 over the last ninety days.

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