Latest Laredo Petroleum News
Nov 25, 2022
Benzinga By Benzinga Insights According to Benzinga Pro, during Q3, Laredo Petroleum LPI earned $337.52 million, a 28.56% increase from the preceding quarter. Laredo Petroleum's sales decreased to $464.11 million, a 17.15% change since Q2. In Q2, Laredo Petroleum earned $262.55 million, whereas sales reached $560.16 million. Return on Capital Employed is a measure of yearly pre-tax profit relative to capital employed by a business. Changes in earnings and sales indicate shifts in a company's ROCE. A higher ROCE is generally representative of successful growth of a company and is a sign of higher earnings per share in the future. A low or negative ROCE suggests the opposite. In Q3, Laredo Petroleum posted an ROCE of 0.34%. AD AD Keep in mind, while ROCE is a good measure of a company's recent performance, it is not a highly reliable predictor of a company's earnings or sales in the near future. ROCE is a powerful metric for comparing the effectiveness of capital allocation for similar companies. A relatively high ROCE shows Laredo Petroleum is potentially operating at a higher level of efficiency than other companies in its industry. If the company is generating high profits with its current level of capital, some of that money can be reinvested in more capital which will generally lead to higher returns and, ultimately, earnings per share (EPS) growth.
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