Why Shares of Gastar Exploration, Inc. Dropped Today

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 Gastar Exploration, (NYSEMKT: GST  ) fell 13% today after reporting earnings.

So what: Fourth-quarter revenue was up 42%, to $26.7 million, coming just short of the $26.9 million estimate from analysts. Worse yet, earnings of $0.01 per share fell $0.05 short of estimates.

Now what: Asset sales and acquisitions would have made it hard for anyone to guess earnings down to the penny last quarter, so I wouldn't worry too much about the miss. What will be important going forward is generating solid returns from the assets the company currently has. Analysts are expecting $0.36 in earnings per share this year, and seeing profits swing in that direction from just $0.18 in 2013 is what investors will be looking for.

An energy stock pick just for you
Imagine a company that rents a very specific and valuable piece of machinery for $41,000... per hour. (That's almost as much as the average American makes in a year!) And Warren Buffett is so confident in this company's can't-live-without-it business model, he just loaded up on 8.8 million shares. An exclusive, brand-new Motley Fool report reveals the company we're calling OPEC's Worst Nightmare. Just click HERE to uncover the name of this industry-leading stock... and join Buffett in his quest for a veritable LANDSLIDE of profits!


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

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.

  • Report this Comment On March 14, 2014, at 5:03 PM, ekfp wrote:

    Check out the SEC filing from yesterday. This company has an activist investor behind it

Add your comment.

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: 2876693, ~/Articles/ArticleHandler.aspx, 8/29/2014 12:22:10 PM

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...


Advertisement