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How Denbury’s Stock Price Reacted after Its Past Earnings Beats

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DNR’s stock price action following its 3Q16 earnings

Denbury Resources (DNR) announced its 3Q16 earnings before the market opened on November 3, 2016. After its 3Q16 earnings were announced, Denbury Resources’ stock price rose ~9% in three trading sessions.

In the three months leading up to its earnings release, Denbury Resources’ stock price has fallen ~9%, despite the ~14% rise in crude oil’s (USO) (UWTI) (DWTI) price during the same period.

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Denbury Resources’ stock price behavior after past earnings beats

Out of the last six quarters, Denbury Resources beat earnings expectations in 2Q16, 1Q16, 3Q15, and 2Q15.

Denbury Resources reported its 2Q16 earnings before the market opened on August 4, 2016. In 2Q16, excluding one-time items, Denbury Resources reported earnings per share (or EPS) of $0.08, $0.06 better than the consensus estimate of $0.02. Following the earnings release, DNR’s better-than-expected earnings saw its stock price rise ~29% in three sessions.

DNR reported its 1Q16 earnings before the market opened on May 5, 2016. In 1Q16, excluding one-time items, the company reported EPS of -$0.03, $0.04 better than the consensus estimate of -$0.07. Following the earnings release, DNR’s better-than-expected earnings saw its stock price rise ~36% in six sessions.

In 3Q15, excluding one-time items, DNR reported EPS of $0.18, $0.05 better than the consensus estimate of $0.13. Following the earnings release, the company’s better-than-expected earnings saw its stock price rise ~13% in two sessions.

A contrarian reaction was observed after DNR’s 2Q15 earnings, when its stock price fell ~13% in one session even after it beat the consensus EPS estimate by $0.01.

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DNR’s 2016 relative performance

So far in 2016, DNR has been outperforming bigger upstream companies from the S&P 500 (SPY). DNR has risen ~30% in the year, whereas bigger oil and gas producers Marathon Oil (MRO), Murphy Oil (MUR), and Occidental Petroleum (OXY) have risen ~14%, ~24%, and ~3%, respectively.

Denbury Resources’ stock price trend changes

After losing ~95% of its market capitalization from June 2014 to January 2016, Denbury Resources’ stock price is finally showing signs of a new uptrend. 

In April 2016, Denbury’s stock price reached a higher high. Currently, DNR’s stock price is trading ~11% below its 200-day moving average. Since its January 2016 bottom, Denbury’s stock price has risen a whopping ~206%.

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