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What: Shares of oil and gas explorer Miller Energy Resources Inc (NYSE: MILL) continued to fall Wednesday, dropping another 12% at its bottom.
So what: This follows a drop Tuesday after the company reported earnings. For the fiscal fourth quarter, the company reported a nearly three-fold jump in revenue to $22.1 million but adjusted net loss ballooned to $17.2 million, or $0.38 per share. Analysts had expected revenue of $22.1 million and a loss of just $0.14 per share.
Now what: Production and revenue is growing, but the continued losses are a concern because Miller Energy isn't exactly sitting on a strong balance sheet. Cash stood at just $6.4 million at the end of last quarter and even after receiving $21.8 million in Alaska production credits the continued quarterly losses can't continue. I'd take a cautious approach to Miller and wait for income and cash flow to improve, but there's upside if production continues to grow like it has recently.
