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 energy explorer EXCO Resources (NYSE: XCO) fell 14% today after the company reported earnings.
So what: Third-quarter oil and natural gas revenue was up 16.7%, to $165.3 million, but the company lost $98.7 million, or $0.46 per share. Adjusted for one-time items, earnings were $0.04 per share, which was still below the $0.10 estimate from analysts.
Now what: One problem is that production was down 11%, to 455 Mmcfe per day, which was offset by higher energy prices. This is also the second straight quarter where results have missed estimates, and even adjusted earnings are trending downward. I'm going to stay away from the stock today and look for improved earnings in the future before jumping in.
