Arc Resources (OTCMKTS:AETUF) Shares Down 7.8% Following Weak Earnings

Arc Resources Ltd. (OTCMKTS:AETUF)’s share price was down 7.8% during trading on Friday after the company announced weaker than expected quarterly earnings. The company traded as low as $16.76 and last traded at $17.07. Approximately 132,751 shares traded hands during mid-day trading, an increase of 94% from the average daily volume of 68,336 shares. The stock had previously closed at $18.52.

The energy company reported $0.27 EPS for the quarter, missing analysts’ consensus estimates of $0.41 by ($0.14). Arc Resources had a net margin of 30.77% and a return on equity of 18.59%. The company had revenue of $889.86 million for the quarter, compared to analysts’ expectations of $1.05 billion.

Arc Resources Dividend Announcement

The company also recently disclosed a dividend, which was paid on Wednesday, October 15th. Investors of record on Tuesday, September 30th were issued a dividend of $0.1376 per share. This represents a dividend yield of 306.0%. The ex-dividend date was Monday, September 29th. Arc Resources’s dividend payout ratio (DPR) is currently 30.22%.

Wall Street Analyst Weigh In

A number of equities research analysts have weighed in on the stock. Wall Street Zen downgraded shares of Arc Resources from a “strong-buy” rating to a “buy” rating in a research note on Monday, August 18th. Raymond James Financial reaffirmed an “outperform” rating on shares of Arc Resources in a report on Monday, September 15th. Cantor Fitzgerald began coverage on shares of Arc Resources in a research note on Monday, October 27th. They issued an “overweight” rating on the stock. TD Securities restated a “buy” rating on shares of Arc Resources in a research note on Tuesday, September 30th. Finally, Capital One Financial raised Arc Resources to a “strong-buy” rating in a report on Monday, October 27th. One investment analyst has rated the stock with a Strong Buy rating and six have issued a Buy rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Buy”.

Arc Resources Trading Down 7.8%

The company’s 50-day moving average is $18.38 and its 200-day moving average is $19.62. The company has a debt-to-equity ratio of 0.19, a quick ratio of 1.20 and a current ratio of 1.21. The firm has a market cap of $9.84 billion, a price-to-earnings ratio of 9.38, a P/E/G ratio of 0.52 and a beta of 0.26.

About Arc Resources

ARC Resources Ltd. engages in the acquiring and developing crude oil, natural gas, condensate, and natural gas liquids in Canada. It primarily holds interests in the Montney basin located in Alberta and northeast British Columbia. ARC Resources Ltd. was founded in 1996 and is based in Calgary, Canada.