Why Gulfport Energy's Shares Jumped

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 Gulfport Energy (Nasdaq: GPOR  ) rose 16% today after the company released earnings.

So what: The company had net income of $25.1 million, or $0.45 per share, in the second quarter, which was $0.06 below estimates. But revenue grew 19% to $66.3 million, which was ahead of estimates of $63.2 million.  

Now what: The earnings miss wasn't good, but investors are looking past that to increasing revenue during the quarter and full year. Management expects full-year production to increase 24%-33% and with the price of oil over $90 per barrel that should lead to strong profits. I'm not buying the bump today because earnings haven't improved, but I like the increase in production and think shares can continue to move higher if oil goes to $100 per barrel.

Interested in more info on Gulfport Energy? Add it to your watchlist by clicking here.

Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.

Motley Fool newsletter services have recommended buying shares of Gulfport Energy. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.

Read/Post Comments (3) | Recommend This Article (1)

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  • Report this Comment On August 08, 2012, at 3:20 PM, shaman84 wrote:

    this is just another rip off, disguised as a computer glitch, best to keep your powder dry, these grifters are waiting for you to make a move,and run up the stock. and wham bam thank you mam, just another day in the lottery.

  • Report this Comment On August 08, 2012, at 3:57 PM, adebortoli wrote:

    Both the article and comment is inaccurate!

    The reason the stock jumped almost 20% is because they first results for their Utica wells were fantastic!

    GPOR is has prime acreage in Ohio and they are sitting on top of millions of barrels of oil and liquid natural gas!

    $50 stock or will be bought out for $50 in the next two years!

    you fools!

  • Report this Comment On August 08, 2012, at 4:00 PM, adebortoli wrote:

    Gulfport Energy's (GPOR +16.9%) Q2 results missed Wall Street estimates, but investors are excited by the company's first Utica Shale well, which Global Hunter calls a "veritable monster" that could lead to "enormous dividends" if its performance is readily repeatable.

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