Encana (ECA) Stock Down Despite Earnings Beat

Encana (ECA) stock is down in early-morning trading on Thursday, after the company reported its 2015 third quarter earnings results before the market open.
By Amanda Albright ,

NEW YORK (TheStreet) -- Encana  (ECA) - Get Report stock is down by 0.80% to $7.40 in early-morning trading on Thursday, after the company reported its 2015 third quarter earnings results. 

Before the market open today, the oil and natural gas production company reported a net loss of $1.2 billion, or $1.47 per share, due to a $1.07 billion impairment charge. 

Excluding the charge, Encana reported a loss of 3 cents per share. Revenue decreased to $1.31 billion, down from $2.28 billion for the year-ago-period. 

Analysts surveyed by Thomson Reuters were expecting the company to report a loss of 4 cents per share on revenue of $1.08 billion for the most recent quarter.

Encana will ramp up its production in the Permian basin in the 2015 fourth quarter, the company said in a statement.

"Decisive action across the organization is continuously strengthening our business," CEO Doug Suttles said in a statement. "We are capturing the benefits of an increasingly focused portfolio and disciplined capital program, as well as significant reductions in our cost structures, debt and interest expense."

Separately, TheStreet Ratings team rates ENCANA CORP as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:

We rate ENCANA CORP (ECA) 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, disappointing return on equity, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.

You can view the full analysis from the report here: ECA

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Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of Jim Cramer, TheStreet or any of its contributors.

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