Magnum rises as 4Q adj. profit surprises Street
Magnum Hunter Resources climbs as 4th-quarter adjusted profit surprises Wall Street
NEW YORK (AP) -- Magnum Hunter Resources Corp.'s stock climbed Friday after the oil and gas producer's fiscal fourth-quarter adjusted earnings surprised Wall Street and revenue beat estimates.
THE SPARK: Magnum reported adjusted earnings of 5 cents per share on revenue of $83.7 million for the three months ended Dec. 31. Analysts surveyed by FactSet predicted a loss of 7 cents per share on revenue of $83.4 million.
Production surged 60 percent to 14,587 barrels of oil equivalent per day.
THE ANALYSIS: Jefferies' Subash Chandra had predicted a quarterly loss of 12 cents per share for Magnum. In a client note, the analyst said that the performance was helped by better-than-expected gas realizations, or the amount of gas they were able to collect and sell.
Chandra maintained a "Hold" rating and $4.50 price target.
A representative for Magnum did not immediately respond to an email seeking comment.
SHARE ACTION: Up 8 cents, or 2.1 percent, to $3.98. Shares of the Houston company have traded between $2.37 and $5.24 over the past year. So far this year, the stock is down 2.3 percent.
