Why Swift Energy's Shares Dropped


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 Swift Energy dropped 12% today, after the company released earnings.

So what: Fourth quarter revenue rose 1.8%, to $157.9 million, which was well ahead of the $149.8 million analysts expected. But despite the rise in revenue, earnings per share were only $0.26, which fell $0.03 short of estimates.

Now what: Lower realized prices accounted for most of the drop in earnings, because production was up 15% from a year ago. Proved reserves were also up 20% from a year ago, so I wouldn't panic over the move today. The stock trades at less than nine times forward earnings and, with prices on the rise, earnings should pick up, as well.

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The article Why Swift Energy's Shares Dropped originally appeared on Fool.com.

Fool contributor Travis Hoium has no position in any stocks mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw. The Motley Fool has no position in any of the stocks mentioned. 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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