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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.
Fool contributor Travis Hoium has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.