Callon Petroleum Company Down 2.99% To $35.70 After Earnings Beat

Thursday, November 2, 2023 - Callon Petroleum Company (CPE) reported upside earnings and downside revenues.

Callon Petroleum Company's earnings came in at an EPS of $1.82 per share, 2.00% higher than estimates for an EPS of $1.79 per share. The firm's earnings are down 55% since reporting $4.04 per share in the same period a year ago. Remember, earnings reported were on an adjusted basis, so they may not be comparable to prior reports and/or analyst estimates.

Consensus estimates for Callon Petroleum Company revenue averaged out to $547.8 million, with the business missing on those expectations with reported third-quarter revenue of $501 million. The $46.8 million (9%) negative revenue surprise led to negative 19% growth year-over-year as the firm reported revenue of $619.4 million in its year-ago quarter. The lower earnings growth compared to revenue points to Callon Petroleum Company not being able to improve its profit margin.

The stock is down 2.99% to $35.70 after the report.

The firm's higher revenue growth to earnings signals that the firm has not been able to reduce costs and has seen its profit margin decrease.

Wall Street Analysts had an average rating of Buy on the stock prior to the report.

InvestorsObserver gives the stock a Bearish Sentiment score at the moment based on recent trading.

Callon Petroleum Company has been a strong performer over the past few months, garnering a high Long-Term Technical Rank by InvestorsObserver of 83, putting Callon Petroleum Company in the top 25% of stocks. The firm set a 52-week low on March 16, 2023 at $28.91 and set a 52-week high on November 4, 2022 at $50.19.

Callon Petroleum Company engages in the exploration, development, acquisition, and production of oil and natural gas. Activities are primarily conducted in the Permian Basin region of West Texas and southeastern New Mexico. Callon relies heavily on the latest horizontal production techniques to extract hydrocarbon products from its assets, with crude oil accounting for over half of production. Historically, a handful of marketing and trading companies have accounted for the majority of the sales for Callon's oil and gas production. Assets are acquired through the drilling of emerging zones on existing acreage but also by acquiring additional locations through leasehold purchases, leasing programs, joint ventures, and asset swaps.