Why EXCO Resources Shares Slid
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What: Shares of EXCO Resources were sliding today, down as much as 10%, after the oil-and-gas explorer came up short on the bottom line in its second-quarter earnings report.
So what: EXCO posted earnings per share of $0.10 for the period, below analyst expectations at $0.11, but an improvement from $0.05 a share last year. Revenue jumped 27.4% in the quarter to $150.3 million, easily beating the analyst consensus at $141.2 million. EXCO also showed improvements in production efficiency as costs per million cubic feet equivalent (mcfe) dropped from $0.38 to $0.31. Management also noted the addition of further territory in the Eagle Ford and Haynesville plays to help boost production.
Now what: Aside from the narrow earnings miss, this seemed to be a pretty solid report. With analysts predicting a drop in revenue the next two quarters, the lower-than-expected profits may sting more than normal. Still, EXCO looks a solid bet after today's drop, as it trades at a reasonable value, and its plans to expand should ensure growing profits.
The article Why EXCO Resources Shares Slid originally appeared on Fool.com.Fool contributor Jeremy Bowman and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't 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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