Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Why EXCO Resources' Shares Dropped

Watch stocks you care about

The single, easiest way to keep track of all the stocks that matter...

Your own personalized stock watchlist!

It's a 100% FREE Motley Fool service...

Click Here Now

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 explorer EXCO Resources (NYSE: XCO  ) fell 14% today after the company reported earnings.

So what: Third-quarter oil and natural gas revenue was up 16.7%, to $165.3 million, but the company lost $98.7 million, or $0.46 per share. Adjusted for one-time items, earnings were $0.04 per share, which was still below the $0.10 estimate from analysts. 

Now what: One problem is that production was down 11%, to 455 Mmcfe per day, which was offset by higher energy prices. This is also the second straight quarter where results have missed estimates, and even adjusted earnings are trending downward. I'm going to stay away from the stock today and look for improved earnings in the future before jumping in.

Rising oil prices helping service companies
If you're looking for energy industry exposure without taking a bet on a specific energy play, it may be time to look at service providers. They benefit from increased drilling without the same risk as explorers. Our top analysts prepared a free report that reveals three stocks that are bound to soar as this trend continues. To discover the identities of these stocks instantly, access your free report by clicking here now.

Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2706167, ~/Articles/ArticleHandler.aspx, 9/28/2016 8:26:23 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 11 hours ago Sponsored by:
DOW 18,228.30 133.47 0.74%
S&P 500 2,159.93 13.83 0.64%
NASD 5,305.71 48.22 0.92%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/27/2016 4:02 PM
XCO $0.99 Down -0.04 -3.88%
EXCO Resources CAPS Rating: **