May 22, 2012
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Niska Gas Storage (NYSE: NKA ) jumped 10% after the company released a disappointing earnings report.
So what: Revenue fell 12% to $57.3 million in the fiscal fourth quarter, falling short of the $63.0 million analysts expected. Earnings were $15.6 million, or $0.22 per share, but also fell below estimates.
Now what: The results weren't terribly impressive this quarter but the company expects to generate adjusted EBITDA in the range of $130 million to $140 million next year, similar to results this year. Cash available for distribution is expected to be between $62 million and $72 million, from $63.7 million this year, meaning the company's high dividend may be safe for now. I'm not buying the jump today because of weakening results, but if the dividend stays where it is, then this is a good dividend play.
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