NEW YORK (TheStreet) -- Shares of Halcon Resources (HK) plunged 7.69% to $3 in after-hours trading Monday after the energy company reported third-quarter earnings that came up short of analysts' expectations.
Halcon posted adjusted earnings of 3 cents a share, down slightly from 4 cents a share in the same period one year earlier. Operating revenue totaled $306.51 million, up from $305.01 million in the third quarter last year.
Analysts had expected earnings of 6 cents a share on revenue of $317.69 million.
Halcon also provided reduced preliminary guidance for the full year 2015. Thanks to lower oil prices, the company now expects to operate six rigs in 2015, five less than originally planned. Halcon also issued a preliminary drilling and completion budget for 2015 in the range of $750 million to $800 million.
Separately, TheStreet Ratings team rates HALCON RESOURCES CORP as a "hold" with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate HALCON RESOURCES CORP (HK) 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 robust revenue growth, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, generally higher debt management risk and disappointing return on equity."
- You can view the full analysis from the report here: HK Ratings Report