NEW YORK (TheStreet) -- Share of Gulfport Energy Corp. (GPOR) are down -20.59% to $73.04 in pre-market trading on Thursday after a ratings downgrade to "market perform" from "outperform" at Wells Fargo (WF).
The firm said it lowered its rating on the independent oil and natural gas exploration company after Gulfport cut its production guidance by 30%.
Separately, TheStreet Ratings team rates GULFPORT ENERGY CORP as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate GULFPORT ENERGY CORP (GPOR) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, compelling growth in net income, good cash flow from operations and expanding profit margins. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 0.2%. Since the same quarter one year prior, revenues rose by 21.0%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- GPOR's debt-to-equity ratio is very low at 0.15 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 2.56, which clearly demonstrates the ability to cover short-term cash needs.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income increased by 52.9% when compared to the same quarter one year prior, rising from $15.88 million to $24.28 million.
- Net operating cash flow has significantly increased by 50.33% to $50.04 million when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 5.61%.
- The gross profit margin for GULFPORT ENERGY CORP is currently very high, coming in at 70.73%. Regardless of GPOR's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, GPOR's net profit margin of 35.52% significantly outperformed against the industry.
- You can view the full analysis from the report here: GPOR Ratings Report