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 oil and gas explorer Petroleum Development Corp.
So what: Revenue jumped 93% from a year ago to $100.3 million, falling short of analyst estimates of $105.3 million. But the bottom line was much better where a profit of $0.66 per diluted share crushed estimates of $0.26.
Now what: Liquids production is increasing, a strategy most producers are employing, but I'm still worried about value. Shares trade at 19 times forward earnings estimates and the company has a history of beating expectations one quarter and falling short the next. I'd like to see a couple straight quarters of strong earnings before jumping in, but this quarter was definitely a good start.
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