Approach Resources Shares Plunged: What You Need to Know
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 Approach Resources (NAS: AREX) fell 13% today after the company released earnings.
So what: Revenue increased 121% to $29.1 million, and net income improved to $8 million or $0.28 per share. Analysts were only expecting $27.5 million in revenue, and earnings of $0.22 per share.
Now what: Proved reserves also increased 32% this quarter, to 66.8 million barrels of oil equivalent. The move today seems a little curious, considering the across-the-board improvements the company posted. I think today's slump provides a nice discount for investors looking to buy shares of Approach Resources.
Interested in more info on Approach Resources? Add it to your watchlist.
At the time this article was published 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. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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