NEW YORK (TheStreet) -- Shares of Quicksilver Resources Inc. (KWK) are higher by 7.16% to $3.52 on heavy trading volume after the independent oil and gas company said that it completed its semi-annual redetermination and closed an amendment to its Combined Credit Agreements on April 25.
The redetermined global borrowing base was reduced to $325 million from $350 million.
- Net operating cash flow has significantly decreased to $29.40 million or 65.94% 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.
- QUICKSILVER RESOURCES INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, QUICKSILVER RESOURCES INC turned its bottom line around by earning $0.90 versus -$13.83 in the prior year. For the next year, the market is expecting a contraction of 128.9% in earnings (-$0.26 versus $0.90).
- The revenue fell significantly faster than the industry average of 7.5%. Since the same quarter one year prior, revenues fell by 49.0%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. Turning our attention to the future direction of the stock, we do not believe this stock offers ample reward opportunity to compensate for the risks, despite the fact that it rose over the past year.
- 36.67% is the gross profit margin for QUICKSILVER RESOURCES INC which we consider to be strong. It has increased significantly from the same period last year. Regardless of the strong results of the gross profit margin, the net profit margin of -27.81% is in-line with the industry average.
- You can view the full analysis from the report here: KWK Ratings Report