Why Vaalco 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 oil & gas company Vaalco Energy fell 13% today after reporting earnings.

So what: Revenue fell 21% from a year ago, to $53.6 million, and the company went from an $8.7 million profit to an $18.9 million loss. On an adjusted basis, the company lost $0.20 per share, when analysts expected a $0.32 per share profit.

Now what: The biggest problem was the drop-off in oil sales, which fell 20% from a year ago. The company has some interesting developments in the pipeline, but until they actually start producing revenue and profits, this is a risky stock. I'm going to stay away for now and see how developments go this year.

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

Fool contributor Travis Hoium has no position in any stocks mentioned. 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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