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 company EV Energy Partners (NASDAQ: EVEP) dropped as much as 10% today after the company reported earnings.
So what: Revenue was up 13% from a year ago, to $75.5 million, but analysts expected $85.3 million on the top line. Earnings per share after one-time items were break-even and, with expectations at $0.47 per share, investors were not happy.
Now what: Revenue is rising, but the company is burning through cash, which isn't good when investors are expecting distributions. Earnings have been falling for the past year and, until the company can get back to a strong bottom line number, I'd be worried about the stock. I'll pass for today and stick with higher-quality dividend payers.
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