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 energy company PDC Energy jumped 14% today after the company released earnings.
So what: The company increased revenue by 9.2% in the quarter to $108.6 million, ahead of estimates, but the bottom line came with a big shocker. The company recorded a $166.7 million impairment charge and that pushed the company to a $126.2 million loss, or a whopping $4.17 per share.
Now what: The charge is related to the company's Piceance Basin proved oil and natural gas properties and doesn't look good on the balance sheet. The company would have had a loss even without the charge, something that will keep me away from the stock for now. I need to see more production improvement, and serious improvement on the bottom line, before speculating on this stock.
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The article Why PDC Energy's Shares Jumped originally appeared on Fool.com.
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