February 27, 2013
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 energy company PDC Energy (NASDAQ: PDCE ) jumped 14% today after the company released earnings.
So what: The company increased revenue by 9.2% in the quarter to $108.6 million, ahead of estimates, but the bottom line came with a big shocker. The company recorded a $166.7 million impairment charge and that pushed the company to a $126.2 million loss, or a whopping $4.17 per share.
Now what: The charge is related to the company's Piceance Basin proved oil and natural gas properties and doesn't look good on the balance sheet. The company would have had a loss even without the charge, something that will keep me away from the stock for now. I need to see more production improvement, and serious improvement on the bottom line, before speculating on this stock.
Interested in more info on PDC Energy? Add it to your watchlist by clicking here.