Gastar Exploration Inc (NYSEMKT:GST) Releases Disappointing Earnings Once Again

[[tagnumber 0]][[tagnumber 1]]Disappointing earnings results are crushing the stock of Gastar Exploration Inc (NYSEMKT:GST) big time. The hit is all the more devastating because this stock more than trippled its market value over the last 10 weeks or so. Halfway through the current session, GST has already lost a whopping 40% in value to $1.29 per share, and the decline shows no signs of slowing down. So how bad is it, really?[[tagnumber 2]] [[tagnumber 0]]Having scheduled the earnings call for May 5, Gastar‘s managers acquainted investors with the current condition of the company after market close, which is why the market reaction is taking place today. As it is, Gastar closed Q1 with a net loss of $0.97 per share, including various impairment charges amounting to a total of $48 million. By contrast, GST‘s loss on a per–share basis reached $0.04 in the same quarter in 2015.This is bad, no doubt, as it indicates grave deterioration. Taking into account GST‘s results in Q2, Q3, and Q4 of 2015, however, we see much bigger losses amounting to $1.52, $2.47, and $2.07 per share, respectively. Altogether, GST closed FY2015 with a per–share loss of $6.11 because the company had to incur $430 million in asset impairment.[[tagnumber 2]] [[tagnumber 0]][[tagnumber 6]]Going back to Q1, 2016, it cannot be denied that by announcing this figure, GST practically missed analysts‘ forecasts for the fifth time in a row. Apparently, Gastar‘s continual inability to beat estimates is likely to result in a handful of downgrades and negative revisions. Looking at the news, a few downgrades have already become reality.[[tagnumber 2]] [[tagnumber 0]]How the current situation will impact insiders and shorters remains to be seen. In the event of positive insider activity, outisders‘confidence in the stock could be restored to a certain extent. Until then, however, the number of investors betting against the stock might as well continue to rise. [[tagnumber 2]] [[tagnumber 0]]Gastar Exploration is an oil and gas enterprise that got hammered by continually low commodity prices deriving from the ever increasing global supply glut. The latter plagued each and every oil and gas company in the industry throughout 2015 and continues to this day. With the benefit of hindsight, investment decision could become more informed, if not easier.[[tagnumber 2]]