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What: Shares of WPX Energy Inc (NYSE:WPX) dropped 15% today after the company released earnings.
So what: Revenue dropped 4% in the quarter due to lower natural gas prices, and net loss nearly doubled, to $114 million, or $0.57 per share. Analysts were only expecting a $0.21 loss per share, so investors are reacting to the bottom-line miss today.
Now what: No one was expecting a profit in the third quarter, but the loss was higher than expected, mostly due to weakness in natural gas. The good news is that WPX Energy is quickly transitioning to liquid plays, increasing drilling into 2014. I don't think the near-term challenges will be as prevalent in the future and, as oil plays a bigger role in results, the bottom line will improve, providing upside for investors willing to buy now.
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.