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"We rate ANTERO RESOURCES CORP (AR) 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, growth in earnings per share and increase in net income. However, as a counter to these strengths, we find that the company has favored debt over equity in the management of its balance sheet."
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Highlights from the analysis by TheStreet Ratings Team goes as follows:
- AR's very impressive revenue growth greatly exceeded the industry average of 6.4%. Since the same quarter one year prior, revenues leaped by 98.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
- ANTERO RESOURCES CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This year, the market expects an improvement in earnings ($1.25 versus -$0.41).
- AR has underperformed the S&P 500 Index, declining 10.53% from its price level of one year ago.
- Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, ANTERO RESOURCES CORP's return on equity significantly trails that of both the industry average and the S&P 500.
- The debt-to-equity ratio of 1.10 is relatively high when compared with the industry average, suggesting a need for better debt level management. Along with this, the company manages to maintain a quick ratio of 0.20, which clearly demonstrates the inability to cover short-term cash needs.
- You can view the full analysis from the report here: AR Ratings Report