WPX Energy Earnings: Here’s Why Shares are Down Now

WPX Energy Inc (NYSE:WPX) had a loss and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 0.68%.

  WPX Energy Inc Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased to $-0.22 in the quarter versus EPS of $-0.15 in the year-earlier quarter.

Revenue: Rose 5.16% to $815 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: WPX Energy Inc reported adjusted EPS loss of $0.22 per share. By that measure, the company missed the mean analyst estimate of $-0.19. It beat the average revenue estimate of $784.32 million.

Quoting Management: “We have high-performing assets and we are continuing our track record of operations and exploration success,” said Ralph A. Hill, WPX’s president and chief executive officer.
“We’re announcing another exploratory success – our second this year on the heels of our Piceance Niobrara gas discovery. This one is in the oil window of the San Juan Basin. The production is from the Mancos Gallup Sandstone. Based on the commerciality of the results, we’re proceeding to develop this play,” Hill added.

Key Stats (on next page)…

Revenue increased 29.16% from $631 million in the previous quarter. EPS decreased to $-0.22 in the quarter versus EPS of $-0.25 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 $0.12 to a loss $0.15. For the current year, the average estimate has moved down from a loss of $0.62 to a loss of $0.71 over the last ninety days.

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