NEW YORK (TheStreet) --Shares of Endeavour International Corporation (END) are falling -22.71% to $2.62 on Wednesday after reporting a net loss of $27.3 million for the 2014 first quarter, compared to a net loss of $12.1 million from the year ago quarter.
The independent oil and gas company reported a net loss on a GAAP basis of $44.9 million versus $14.0 million for the 2013 first quarter.
Net loss per common share was -91 cents for the most recent quarter, compared to -31 cents for the same quarter last year.
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Endeavour reported revenue for the 2014 first quarter was $94.2 million, compared to $57.7 million from the previous year's first quarter.
TheStreet Ratings team rates ENDEAVOUR INTERNATIONAL CORP as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate ENDEAVOUR INTERNATIONAL CORP (END) a SELL. This is driven by multiple weaknesses, 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 unimpressive growth in net income, generally high debt management risk, disappointing return on equity and weak operating cash flow."
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 328.7% when compared to the same quarter one year ago, falling from -$6.45 million to -$27.66 million.
- The debt-to-equity ratio is very high at 16.71 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 0.45, 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, ENDEAVOUR INTERNATIONAL 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 $2.66 million or 92.86% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- Compared to where it was a year ago, the stock is now trading at a higher level, and has traded in line with 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.
- You can view the full analysis from the report here: END Ratings Report