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 independent oil and gas company Gulfport Energy Corporation (GPOR) fell 19% today after reporting earnings.
So what: First quarter production jumped more than four-fold to 2,437.9 thousand barrels of oil equivalent, but revenue of $118 million fell short of the $123.6 million that analysts expected. Adjusted net income of $16.7 million, or $0.20 per share, was also a penny behind estimates.
Now what: Management may be moving a little slower in expansion than investors had hoped, and that explains some of the disappointment. Plus, after the earnings miss a number of analysts rushed out to downgrade the stock, so that put further pressure on the stock. I think that long-term there's not a huge reason to worry, and management is balancing growth with profits, so I'd see today's sell-off as a time for investors on the fence to jump back in.
