The company reported flat adjusted earnings per share, which beat Sterne Agee's estimate of a loss of 3 cents and matched the consensus estimate. Adjusted EBITDA of $17.6 million surpassed Sterne Agee's estimate of $12.6 million and consensus estimate of $15.1 million. Stronger oil production and pricing than expected, lower unit expenses and lower taxes drove the variance, according to Sterne Agee's research note. The firm holds a target price of $7.50 on the company.
Howard Weil also upgraded Callon Petroleum to "outperform" from "sector perform" after the earnings report.
TheStreet Ratings team rates CALLON PETROLEUM CO/DE as a "hold" with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate CALLON PETROLEUM CO/DE (CPE) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and increase in net income. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, generally higher debt management risk and feeble growth in the company's earnings per share."