Forest Oil Corp Earnings: Swinging to a Loss After Two Quarters of Profit

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Forest Oil Corporation (NYSE:FST) reported its results for the first quarter. Forest Oil is an independent oil and gas company engaged in the acquisition, exploration, development, and production of natural gas and liquids mainly North America.

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Forest Oil Earnings Cheat Sheet for the First Quarter

Results: Loss widened to $32.7 million (29 cents per diluted share) from $3.3 million (loss of 3 cents per share) in the same quarter a year earlier.

Revenue: Fell 4.8% to $158.9 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Forest Oil Corporation reported adjusted net income of 11 cents per share. By that measure, the company fell short of mean estimate of 20 cents per share. It fell short of the average revenue estimate of $187.7 million.

Quoting Management: H. Craig Clark, President and CEO, stated, “Our efforts to grow our oil and liquids production are evident from the first quarter results. We were able to achieve organic oil and liquids production growth of 24% compared to the first quarter of 2011, which resulted in oil and liquids comprising 32% of total first quarter 2012 production, our highest percentage in approximately five years. We have also decided to move the one rig we had in the Haynesville Shale to East Texas so our entire capital program is now dedicated to oil and liquids development.”

Key Stats:

The company has now come in under analyst forecasts for three quarters in a row. It missed the mark by 8 cents in the fourth quarter of the last fiscal year and by 4 cents in the third quarter of the last fiscal year.

FST ended a three-quarter streak of profits when it reported a loss in the latest quarter. The company reported a profit of $19.5 million in the fourth quarter of the last fiscal year, a profit of $82.8 million in the third quarter of the last fiscal year and $38.9 million in the second of the last fiscal year.

From the fourth quarter of the last fiscal year, the company’s current liabilities fell to $364,310 from $340.8 million.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the second quarter has moved down from 24 cents a share to 21 cents over the last ninety days. At 90 cents per share, the average estimate for the fiscal year has fallen from $1.06 ninety days ago.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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