NEW YORK (TheStreet) -- Houston-based oil and natural gas producer Goodrich Petroleum Corporation (GDP - Get Report) is due to report fourth-quarter and full-year earnings after the bell on Wednesday, Feb. 19.
Analysts surveyed by Thomson Reuters expect a net loss of 48 cents a share and revenue of $62.37 million for the three months ended December.
For fiscal 2013, consensus is for a per-share loss of $2.39 and total sales of $214.12 million.
By early afternoon on Wednesday, shares had tumbled 3.5% to $15.71. Trading volume of 3.7 million shares was more than double its three-month daily average.
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TheStreet Ratings team rates GOODRICH PETROLEUM CORP as a Sell with a ratings score of D+. The team has this to say about their recommendation:
"We rate GOODRICH PETROLEUM CORP (GDP) a SELL. This is driven by a number of negative factors, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally high debt management risk, disappointing return on equity, weak operating cash flow and feeble growth in its earnings per share."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income has significantly decreased by 318.3% when compared to the same quarter one year ago, falling from $12.41 million to -$27.09 million.
- The debt-to-equity ratio is very high at 2.89 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with this, the company manages to maintain a quick ratio of 0.27, which clearly demonstrates the inability to cover short-term cash needs.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, GOODRICH PETROLEUM CORP's return on equity significantly trails that of both the industry average and the S&P 500.
- Net operating cash flow has significantly decreased to $4.98 million or 74.64% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
- GOODRICH PETROLEUM CORP has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past year. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, GOODRICH PETROLEUM CORP reported poor results of -$2.48 versus -$1.05 in the prior year. This year, the market expects an improvement in earnings (-$2.38 versus -$2.48).
- You can view the full analysis from the report here: GDP Ratings Report