With a rise in net income, Range Resources (NYSE:RRC) beat Wall Street forecasts in the second quarter.
Earnings and Revenue The company experienced stronger-than-expected EPS and revenues. The company reported EPS of 34 cents a share versus the loss of one cent a share estimate and revenues of $442.4 million versus the $318.3 million estimate.
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The company's net income for the quarter rose 8.5% to $55.7 million. Revenue climbed 32% from $255.2 million in the same period last year.
Company Fundamental Trends The company's profit in the latest quarter comes on the heels of losses in the previous two quarters. In the first, The company reported a net loss of $41.8 million while losses totaled $3 million in the fourth quarter of the last fiscal year.
History Against Expectations The company has now topped analyst estimates for at least the last four quarters. It beat by 9 cents in the first quarter, 2 cents in the fourth quarter of the last fiscal year and 4 cents in the third quarter of the last fiscal year.
Official Comment: "Our second quarter results reflect excellent performance," Jeff Ventura, Range's President and CEO, said. "The benefits of our Barnett sale last year have positively impacted our second quarter operating and financial results. The sale allowed us to fast-forward the development of our core plays, improve our capital efficiency, lower our cost structure, and strengthen our financial position. The 42% increase in production coupled with a 16% decrease in aggregate cash unit costs are a vivid reflection of our performance combined with the sale benefits. While low natural gas prices impacted our financial results, our strong hedge position provided substantial protection. Looking ahead, we have approximately 80% of expected production hedged for the remainder of the year. We now expect our 2012 production growth to be 35%, or the high end of our previous full-year guidance. We also expect liquids growth in the fourth quarter to reach 40% compared to the fourth quarter of 2011. With the excellent drilling results in the first half of the year and our strong hedge position, we are well positioned to add material per share value in the second half of 2012."
Estimates provided by Zacks Investment Research and company fundamentals from Xignite Financials.