Quicksilver 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 Quicksilver Resources (NYS: KWK) fell 25% today after the company beat earnings estimates.
So what: Yes, you read that right, Quicksilver beat both top and bottom line estimates, yet the stock is still getting crushed. Second-quarter revenue was $229.3 million, topping the $218.8 million analysts expected, and adjusted earnings per share were $0.02 better than estimates, at $0.07.
Now what: Management also said it would spend 39% more than expected on exploration, which the market wasn't excited about as oil prices fell. In general, oil stocks are down today, so this is just the worst of a broader sell-off. I would like to say it's a buying opportunity, but there doesn't seem to be any bottom in sight right now.
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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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