Forest Oil (FST) had a very rough morning as company shares have plummeted about 38% Wednesday following the company’s earnings report.
The oil company’s fourth-quarter earnings were well below analysts’ expectations. Forest Oil reported earnings per share of 2 cents for the quarter which missed the consensus estimate of 3 cents from analysts polled by Thomson Reuters.
FST stock’s tumble can also be attributed to the company’s revenue total of $88.49 million, far below analysts’ expectations of $96.31 million. The company’s end-of-year reserves estimates also suffered a decline.
Forest Oil’s reserves estimates as of Dec. 31, 2013 were about 625 billions of cubic feet equivalent (Bcfe) which were 66% proved developed. The oil company reported reserves of 1,363 Bcfe on December 31, 2012 which were 69% proved developed.
TheStreet Ratings team rates Forest Oil a “sell” with a ratings score of D, citing weaknesses in the company’s disappointing historical performance in the stock itself and weak operating cash flow.