Why Endeavor International's Shares Plunged

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 Endeavor International (NASDAQOTH: ENDRQ  ) dropped as much as 16% today after the company reported earnings.

So what: Revenue fell 56% to $36.9 million due to production dropping from 10,724 boe/day last year to 7,980 in the third quarter. Adjusted net loss nearly tripled to $34.7 million, or $0.74 per share, which was well below the $0.27 per share loss analysts expected.  

Now what: Maintenance accounted for some of the drop in production but the numbers were still disappointing. Management predicts 12,000-13,000 boe/day next quarter, which would be a big bump, although may not be enough to make a profit. I'm more concerned about the company's losses than just today's miss. Those losses will keep me from buying the stock's discount today.

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