Arc Resources (OTCMKTS:AETUF) Issues Quarterly Earnings Results

Key Points

• Q4 earnings missed estimates: Arc Resources reported EPS of $0.32 vs. the $0.37 consensus (a $0.05 miss), while posting a 16.90% return on equity and a 25.94% net margin; the stock fell about 4.0% to $18.56 on the news.
• Valuation and balance-sheet snapshot: market cap roughly $10.6 billion, PE of 10.98 and PEG of 1.73, with modest leverage (debt-to-equity ~0.28) but tight liquidity metrics (current ratio ~0.54).
• Analyst sentiment is "Moderate Buy": among recent coverage there is 1 Strong Buy, 7 Buy, 2 Hold and 1 Sell, with mixed recent actions (new buys and several downgrades to hold).

Arc Resources (OTCMKTS:AETUF - Get Free Report) released its earnings results on Thursday. The energy company reported $0.32 EPS for the quarter, missing the consensus estimate of $0.37 by ($0.05), Zacks reports. Arc Resources had a return on equity of 16.90% and a net margin of 25.94%.

Arc Resources Stock Down 4.0%

Shares of AETUF traded down $0.78 during trading hours on Thursday, hitting $18.56. 35,986 shares of the company were exchanged, compared to its average volume of 320,766. The company has a market cap of $10.60 billion, a PE ratio of 10.98, a PEG ratio of 1.73 and a beta of 0.29. Arc Resources has a 52 week low of $15.05 and a 52 week high of $23.86. The company has a debt-to-equity ratio of 0.28, a quick ratio of 0.53 and a current ratio of 0.54. The firm's 50 day moving average is $18.28 and its 200-day moving average is $18.51.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently weighed in on the stock. Roth Mkm initiated coverage on shares of Arc Resources in a research report on Friday, December 19th. They issued a "buy" rating for the company. Scotiabank cut shares of Arc Resources from a "strong-buy" rating to a "hold" rating in a research report on Friday, November 7th. Cantor Fitzgerald started coverage on shares of Arc Resources in a report on Monday, October 27th. They issued an "overweight" rating for the company. UBS Group cut Arc Resources from a "buy" rating to a "hold" rating in a research report on Friday, December 12th. Finally, Capital One Financial raised shares of Arc Resources to a "strong-buy" rating in a report on Monday, October 27th. One analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating, two have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy".

Arc Resources Company Profile

Arc Resources Ltd., trading on the OTC Markets under the ticker AETUF, is a Canadian energy company primarily engaged in the exploration, development and production of natural gas, condensate and natural gas liquids. Headquartered in Calgary, Alberta, the company’s core operations are concentrated in the Montney formation, a premier resource play extending across northeastern British Columbia and northwestern Alberta. Arc’s portfolio emphasizes liquids-rich gas production supported by proprietary midstream infrastructure, including gas processing facilities, pipelines and water management systems.

Since its formation in the mid-1990s as Arc Energy Trust and its conversion to a corporation in 2015, Arc Resources has pursued a disciplined growth strategy focused on operational efficiency, cost control and sustainable development.

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