Why Continental Resources Stock Fell after 4Q16 Earnings


Feb. 28 2017, Updated 7:38 a.m. ET

Stock performance

The day after Continental Resources’ (CLR) 4Q16 after-market earnings release on February 23, 2017, CLR stock fell ~3.4%. However, YoY (year-over-year), CLR has risen ~149.0%. In this part of the series, we’ll analyze CLR’s stock performance with respect to movements in the broader industry and the broader market.

As we can see in the above graph, Continental Resources’ performance has been driven mainly by WTI (West Texas Intermediate) crude oil prices (UCO). Crude oil prices and natural gas prices (UGAZ) have been driving the broader industry ETF, the Energy Select Sector SPDR ETF (XLE).

From February 10–24, 2017, Continental Resources stock was mostly outperforming the Energy Select Sector SPDR ETF (XLE). Toward the end of the period, however, it had lower returns than XLE. Continental Resources stock fell ~4.0% during the two-week period, while XLE fell ~3.0%.

Continental Resources stock had lower returns than crude oil at the end of the period. It also underperformed the SPDR S&P 500 ETF (SPY), which rose 2.3% during the period.

Continental Resources stock fell ~3.4% on February 24, 2017, likely due to its revenue miss. An ~0.84% fall in crude oil prices on February 24 also likely caused CLR stock to fall.

In the next part of this series, we’ll take a look at CLR’s implied volatility.

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