Energy company El Paso Corporation (EP) reported a big first-quarter loss Friday, but adjusted results easily beat analysts' expectations, sending the company's shares higher.
The Houston-based company reported a first quarter loss of $978 million, or $1.41 per share, compared with a profit of $200 million, or 29 cents per share, in the year-ago period. Excluding $1.3 billion in non-cash charges, however, the company saw adjusted earnings of 47 cents per share.
On average, Wall Street analysts expected earnings of 27 cents per share, excluding items.
The company said that this quarter's improvement was ''due to realized gains on oil and natural gas hedges and continued pipeline growth.''
El Paso shares rose $1.09, or +14%, in late morning trading Friday.
The Bottom Line
We had removed El Paso Corp from our “Recommended” dividend stocks list on Aug. 1, when shares were trading at $17.93. The company currently has a 2.61% dividend yield, based on last night’s closing price of $7.67. The stock has technical support in the $5.50-$6.00 price area. If the shares can firm up, we see overhead resistance around the $10 price level. We would remain on the sidelines for now.
El Paso Corporation (EP) is not recommended at this time, holding a Dividend.com DARS Rating of 3.0 out of 5 stars.
Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.
