Please ensure Javascript is enabled for purposes of website accessibility
Free Article Join Over 1 Million Premium Members And Get More In-Depth Stock Guidance and Research

Why Shares of Endeavour International Corporation Plunged Today

By Travis Hoium - Mar 5, 2014 at 3:00PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Is this meaningful or just another movement?

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 Endeavour International Corporation (NYSE: END) fell 22% today after reporting earnings.

So what: Fourth-quarter sales volumes rose 18%, to 13,648 barrels of oil equivalent per day, and revenue was up 20%, to $116.9 million, ahead of estimates. But net loss more than quadrupled, to $28.1 million, or $0.60 per share, far worse than the $0.33 loss that analysts expected. 

Now what: The loss is concerning, and so is $871 million in long-term debt, which could strangle the company if operations don't improve more quickly. I'm always leery of companies with high debt that can't grow profitably, because that can lead to the forced selling of valuable assets in the future. I just don't see a lot of positive trends for Endeavour International, and will stay out of the stock today.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
640%
 
S&P 500 Returns
139%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 12/03/2021.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Our Most Popular Articles

Premium Investing Services

Invest better with the Motley Fool. Get stock recommendations, portfolio guidance, and more from the Motley Fool's premium services.