Sandridge Energy 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 Sandridge Energy (NYS: SD) fell 21% today after the company released outstanding earnings growth.
So what: Yes, you read that right, great earnings and the stock plunged. Sandridge's revenue doubled to $364.8 million, and earnings per share spiked to $0.42. Adjusting for one-time items, the company broke even when analysts were expecting a $0.03 per share profit.
Now what: Management also increased 2011 guidance to 24.1 million barrels of oil equivalent from a previous guidance of 23.3 MMBoe. This seems like a bit of an overreaction, but that's just the kind of week we've had on the market. I would love to say this is a great buying opportunity, but there may be more downside based on this reaction, so I would tread lightly.
Interested in more info on Sandridge Energy? Add it to your watchlist.
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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