Why Centennial Resource Development Stock Spiked 14% in Morning Trading
Shares of U.S. onshore energy company Centennial Resource Development (NASDAQ: CDEV) rose as much as 14% in early trading on May 5. Although oil prices were a touch higher in the morning, the real reason for the move was the company's first-quarter earnings update, released after market close on May 4.
Typically, the headline number for a company when it reports is the bottom line -- earnings. On that front, Centennial lost $0.12 per share in the first quarter of 2021. That was a significant improvement over the red ink it spilled in the year-earlier period, but Wall Street analysts had been calling for the company to hit the breakeven point. That type of miss would usually result in a stock falling, but not today.
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Source Fool.com
