Earnings Wrap: Transocean (RIG), XPO Logistics (XPO), Exelixis (EXEL), 2 More

Page 1 of 2

All three index futures are pointing north in pre-market trading as the Bank of England just announced that it would cut interest rates for the first time in seven years, to 0.25 basis points. Investors are also digesting yesterday’s ADP Employment Report, which showed 179,000 private jobs were created in July, topping estimates of 170,000.

Among the stocks that are on investors’ radar this morning are Continental Resources, Inc. (NYSE:CLR), Sangamo Biosciences, Inc. (NASDAQ:SGMO), Transocean LTD (NYSE:RIG), Exelixis, Inc. (NASDAQ:EXEL), and XPO Logistics Inc (NYSE:XPO), all of which have reported their latest quarterly results since yesterday’s market close. Let’s find out these companies performed and analyze hedge fund sentiment towards them.

Through extensive research, we have determined that the best approach to outperform the broader indices is to follow hedge funds into their top small-cap ideas. In our backtests, a portfolio of the 15 most popular small-cap stocks generated monthly alpha of 81 basis points, versus 0.7 percentage points posted by hedge funds’ top large- and mega-cap picks (see more details here).

Offshore Oil Drilling BP RIG ESV 2

Continental Resources Posts Unexpectedly High Loss

Continental Resources, Inc. (NYSE:CLR)’s stock is 1% in the red this morning after the company posted larger than expected second quarter losses, mainly due to the slump in crude prices. The Oklahoma-based oil and gas producer’s adjusted loss in the quarter was $0.18 per share, worse than the estimated loss of $0.17, while revenue of $451.21 million was well behind the consensus estimate of $554.79 million. Production also plummeted by 3% to 219,323 barrels of oil equivalent (BOE) per day. However, the company increased its estimated production for the full year to 210,000-to-220,000 BOE per day, a 5,000 BOE per day rise from its previous guidance. Continental Resources CEO Harold Hamm said that the performance achieved by the Bakken, SCOOP and STACK assets of the company was exceptional during the quarter, and that the company is on track to slash its long-term debt through an agreement to sell a second non-strategic asset for $281 million. A total of 50 hedge funds in our database were long Continental Resources, Inc. (NYSE:CLR) at the end of the first quarter, up from 34 funds a quarter earlier.

Follow Continental Resources Inc (NYSE:CLR)

Sangamo Biosciences Misses Estimates

Sangamo Biosciences, Inc. (NASDAQ:SGMO) is 22% in the red in pre-market trading after the company posted a second quarter net loss of $26.6 million, or $0.38 per share, worse than the consensus forecast of a loss of $0.24 per share. Revenue of $3.7 million also fell well short of the estimated $5.38 million. The California-based biopharmaceutical company expects $12 million-to-$17 million revenue for the full year. In a statement, Sangamo said that a big chunk of its quarterly revenue was generated due to agreements and research collaborations with Shire PLC (ADR) (NASDAQ:SHPGand Biogen Idec Inc (NASDAQ:BIIB). The decrease in collaboration agreement revenue was a result of the company’s amendment to its license agreement with Shire in the third quarter of 2015, which returned the rights to Sangamo’s hemophilia treatments. At the end of March, 20 funds tracked by Insider Monkey were long Sangamo Biosciences, Inc. (NASDAQ:SGMO).

Follow Sangamo Therapeutics Inc (NASDAQ:SGMO)

On the next page we’ll discuss the results issued by Transocean, Exelixis, and XPO Logistics.


Page 1 of 2