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 oil and gas explorer Quicksilver Resources (NYS: KWK) fell 12% today after reporting earnings.
So what: Revenue fell 31.6% to $177.7 million, and the company reported a loss of $0.04 per share. Analysts had expected $181.5 million in revenue and a loss of just a penny per share.
Now what: Quicksilver is still dealing with a huge debt load, and today's loss doesn't give investors any confidence in its operations. Management expects to reduce debt in the future, but it's still unknown how that will take place and what assets Quicksilver will have to sell as a result. I'd stay far away from this stock, because with energy prices falling, the future doesn't look good for Quicksilver.
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The article Why Quicksilver Resources' Shares Dropped originally appeared on Fool.com.
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