Why Swift Energy’s Shares Dropped

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 Swift Energy (NYSE: SFY  ) dropped 12% today, after the company released earnings.

So what: Fourth quarter revenue rose 1.8%, to $157.9 million, which was well ahead of the $149.8 million analysts expected. But despite the rise in revenue, earnings per share were only $0.26, which fell $0.03 short of estimates.  

Now what: Lower realized prices accounted for most of the drop in earnings, because production was up 15% from a year ago. Proved reserves were also up 20% from a year ago, so I wouldn't panic over the move today. The stock trades at less than nine times forward earnings and, with prices on the rise, earnings should pick up, as well.

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


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