Yahoo Finance Why Newfield Exploration’s Stock Fell despite Its Earnings Beat
Why Newfield Exploration's Stock Fell despite Its Earnings Beat
Newfield Exploration’s stock performance
Following Newfield Exploration’s (NFX) 1Q16 earnings release on May 3, 2016, its stock fell 2.4% the next day. NFX’s stock has fallen ~11% YoY (year-over-year).
In the above graph, we can see NFX’s stock performance with respect to movements in the broader industry and the broader market.
In the period under discussion—April 20 to May 4—NFX underperformed the broader energy industry (XLE), which fell 2.4%. NFX fell 6% during the period. NFX also underperformed the broader market (SPY), which fell ~2.4% during the period.
In the above graph, it’s clear that NFX’s performance has been driven mostly by WTI (West Texas Intermediate) crude oil prices (USO). This, along with natural gas prices (UNG), has been a major driver of XLE.
Following NFX’s 1Q16 earnings release on May 3, its stock fell on May 4, despite its earnings beat. Crude oil prices rose 1.7% on May 4. So, NFX’s stock was likely trading lower due to global growth concerns, weak Chinese manufacturing data, and disappointing European economic data.
Growth worries have pulled down many US stocks. NFX’s peers such as Apache (APA) and Concho Resources (CXO) also saw their stock prices fall by ~4% and 1.1%, respectively, on May 4, compared to the previous day. These companies make up a combined ~3% of XLE.
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