Resolute Energy Earnings: Falling Expectations And Low Interest From The Crowd

Shares of Resolute Energy Corp REN are up about 2.3 percent on Monday afternoon, as the company prepares to announce its first quarter financial results after the market closes.

According to Estimize, experts expect to see a larger net loss, both in relation to the same quarter of last year and to the last quarter.

For the first quarter of 2014, the company reported an in-line (with estimates) loss of ($0.01) per share on revenue of $90.88 million. For the last quarter, the E&P company posted an even larger net loss, of ($0.07) per share on revenue of $65.93 million.

For the first quarter of 2015, the Street models a consensus net loss of ($0.13) per share on revenue of $64.03 million. The crowd has not opined enough to draw any conclusions other than the noticeable lack of interest. The chart below features a history of Resolute Energy’s actual earnings compared to estimates.

As it can be observed, there is no clear trend here, although the company has managed to beat estimates in the past couple of quarters.

A second graph –below- illustrates the evolution of consensus over time.

As it can be appreciated, the Street’s expectations have gone through several ups and downs. However, the general trend points downwards, meaning that estimates fell since the beginning of the year.

Analyst Ratings

Since the beginning of the year, a few major Wall Street research firms have weighed in on Resolute Energy. Most recently, SunTrust Robinson Humphrey reiterated a $0.75 price target on the stock.

A few months ago, Barclays downgraded the stock to Underweight, setting a $0.50 price target, while Raymond James demoted it to Underperform.