Why Gulfport Energy's Shares Jumped
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 Gulfport Energy (NAS: GPOR) rose 16% today after the company released earnings.
So what: The company had net income of $25.1 million, or $0.45 per share, in the second quarter, which was $0.06 below estimates. But revenue grew 19% to $66.3 million, which was ahead of estimates of $63.2 million.
Now what: The earnings miss wasn't good, but investors are looking past that to increasing revenue during the quarter and full year. Management expects full-year production to increase 24%-33% and with the price of oil over $90 per barrel that should lead to strong profits. I'm not buying the bump today because earnings haven't improved, but I like the increase in production and think shares can continue to move higher if oil goes to $100 per barrel.
Interested in more info on Gulfport Energy? Add it to your watchlist byclicking here.
The article Why Gulfport Energy's Shares Jumped originally appeared on Fool.com.Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.Motley Fool newsletter serviceshave recommended buying shares of Gulfport Energy. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.
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