Petrobras (PBR) Stock Slumps on Surprise Q1 Loss
NEW YORK (TheStreet) -- Petrobras (PBR) - Get Report stock is falling 4.35% to $7.03 in mid-morning trading on Friday after the Brazilian state-operated energy company delivered lower-than-anticipated financial results for the 2016 first quarter.
After yesterday's market close, the company reported a loss of 2 cents per share, below expectations for earnings of 11 cents per share and lower than earnings of 14 cents per share for the same period last year.
Revenue dropped 31% year over year to $17.99 billion for the first three months of the year, while analysts had estimated revenue of $22.43 billion.
Petrobras reduced oil and natural gas production by 7% to 2.62 million barrels of oil equivalent per day as weak commodity prices persist.
Oil products output in Brazil remained relatively flat at 1.96 million barrels of oil equivalent per day, while oil product sales in the country dropped 8%.
Additionally, the Rio de Janeiro-based company agreed to sell its 67.19% stake in Petrobras Argentina (PZE) to Pampa Energia (PAM) for $892 million.
Separately, Petrobras has a "sell" rating and a letter grade of D at TheStreet Ratings because of the company's disappointing return on equity, generally disappointing historical performance in the stock itself and generally high debt management risk.
You can view the full analysis from the report here: PBR
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.
