California Resources beats EPS estimate as revenue falls 50.8%

what happened

California Resources Corporation reported results for the quarter ended September 30, according to Earnings Summary. Adjusted earnings came in at $1.17 per share, below $1.46 a year earlier but above the $0.96 mean estimate of thirteen analysts.

Revenue fell 50.8% to $421.00 million, while analysts had expected $965.31 million. The company posted a quarterly loss of $315 million, and its reported loss per share was $3.55. Shares rose 9.2% over the quarter and 24.0% so far this year.

why it matters

For investors, the main concern is the revenue decline and falling forecasts: the mean earnings estimate dropped about 36.1% over three months, and nine analysts cut their estimates in the last 30 days. How the market reacts will depend on whether these figures reflect the trend in the company's oil and gas business.

market impact

US oil and gas producers: weak revenue and downward estimate revisions weigh on CRC shares

• ↔CRC shares mixed — the earnings beat supports the stock, but the revenue drop and estimate cuts pull it down

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