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 (NASDAQ: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.
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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.