86 days have passed by since the last earnings report for Ring Energy, Inc. (NYSE:REI) and the new quarterly results look set to arrive in 131 days. The shares of REI at the moment are trading at a volume of 0.77 million, which compares with its normal daily standard volume of 1.32 million shares. This has led to the shares of the company advancing by 1.22%, currently exchanging hands at $1.66 a share. REI stock has been up by $6.57 (-79.83%) ever since it reached its 52-week high of $8.23 back in November 07, 2018. It has progressed above its 50-day moving average of $1.6092 and is down -1.78% over the past week. The stock has retreated -13.2% since the last one arrived so the question here is that will the downbeat trend in that time frame continue leading up to its next earnings release, or is the REI share price due for a breakout?
Ring Energy, Inc. (REI) Forecasts And Latest Quarter Earnings
Ahead of their fiscal fourth-quarter to be released on Wednesday, Mar 11, 2020, 8 analysts who are covering the company are estimating that it will record a profit of $0.12 per share, with analysts having different outlooks from $0.08 to $0.16. The current agreed outlook, when compared to the profit recorded last year, is at $0.1 a share, thus an increase of 20% is expected. The profit view for a complete financial year for Ring Energy, Inc. is expected to be around $0.59 in current year, a decline of nearly 84.38% from last year which was $0.32.
Let’s now look at their sales section, REI’s revenue is estimated to be $32.69M, a figure which is more than the $32.69M recorded for Q4 last year. Their sequential sales though are expected to move versus Q3’s $51.33B. Their full-year outlook is pegged at $193.05M, implying that there would be an increase of 60.79% over the $120.06M they recorded last year in revenue. Ring Energy, Inc. is projected to get sales lifted by 9.21% in the next quarter, with a revenue target of $210.83M.
Analyzing The Earnings History Of Ring Energy, Inc. (NYSE:REI)
In the past few years, the REI stock has been known to miss the Wall Street’s earnings projection. The company missed 25% of the time, according to the data pulled on their earnings, was able to meet predictions on 3 occasions and topped expectations 6 times. Looking at the past trend, the price of Ring Energy, Inc. shares had risen following the release of their earnings in 14 of the last 19 quarters.
Looking back, here is how Ring Energy, Inc. (REI) stock reacted to earnings misses and beats. It gave investors reason to cast doubts with the price going down after 2 of the last four earnings reports. The shares of Ring Energy, Inc. recorded 16.4%, -9.13%, -0.65% and 4.32%, respectively, on the first day of past earnings releases. After a week of earnings reports, the changes were 1.06%, -5.48%, 6.03% and -3.92%. Their post-earnings price movements have resulted in an average increase of 2.74% and an average decrease of -0.58% in Ring Energy, Inc. on next day and 7th day, sequentially. REI’s one month stock performance led to its shares rising by 12.93% with a return of -77.04% witnessed over the last 52 weeks.
The higher number of analysts has assigned a buy or better ratings (6) on the Ring Energy, Inc. stock, while 2 of them have a rating of a Hold with the 11-year target price suggested by the analysts standing at $4.44. This price target implies potential upside of 167.47 percent over the next 12 months based on the current share price.
Ring Energy, Inc. (REI) Post Earnings Announcement Drift (PEAD)
Back on August 07, 2019, Ring Energy, Inc. (NYSE:REI) released its Q3 results, in which it recorded EPS of $0.16 that exceeded consensus estimates of $0.14. After the earnings were reported, the price of REI stock kicked off the session at $1.97 and remained in a range of $2.24 to $2.24 on the first day. The shares were priced at $2.2 at the close with a total volume of shares being 3097642.
On May 08, 2019, the Q2 earnings report was disclosed with EPS of $0.19. This was above the estimation of $0.04 per share. The stock price range of REI was between $5.37 and $5.54 on the first-day post announcement, after opening the day at $4.43. The session came to close at $4.48 and there was a total volume of 1460686 shares.
February 26, 2019 was the day when its Q1 results were unveiled. The earnings came in at $0.01, missing the projected $0.06 per share. The very next day, REI stock opened at $5.97 while staying in a range of $6.3 to $6.46. At the end, it moved to $6.1 a total volume of shares been 727518.
In the year-ago Q4 earnings on November 06, 2018, the company saw profit per share of $0.1. That was worse than the $0.11 analysts had expected. Ring Energy, Inc. share price started at $7.27 on the first full trading day post-earning and then exchanged hands between $7.68 and $8.23 throughout the session. The closing price of $7.72 came on the back of 813150 shares in volume.