XPLR Infrastructure Stock Tanks Nearly 30% On Dividend Suspension, Strategic Pivot: Retail Shrugs It Off

XPLR reported its earnings for the fourth quarter and fiscal year 2024, posting earnings per share (EPS) of $1.08, beating Wall Street estimates of $0.69, according to Stocktwits data.

Shares of XPLR Infrastructure (NEP) tanked nearly 30% in mid-day trade on Tuesday after the company suspended its dividend indefinitely.

XPLR reported its earnings for the fourth quarter and fiscal year 2024, posting earnings per share (EPS) of $1.08, beating Wall Street estimates of $0.69, according to Stocktwits data. This compares to EPS of $0.41 during the same period last year.

However, it missed revenue estimates, posting $294 million during the quarter, compared to a consensus of $298 million, according to Stocktwits data.

Regarding the indefinite suspension of dividends, the company explained that this decision aligns with its strategic shift to allocate cash flows toward reinvestment opportunities.

"We believe today's strategic repositioning of XPLR Infrastructure's business model will unlock the value of the strong cash flows in the existing portfolio and best position the partnership to allocate cash flow optimally for unitholders in the future," said John Ketchum, chairman of XPLR Infrastructure.

Retail sentiment on Stocktwits remained in the ‘extremely bullish’ (76/100) territory. Message volume rose significantly to enter the ‘extremely high’ (93/100) zone.

Users were optimistic about the company’s prospects.

Another user thinks it’s a “no-brainer” to invest in the company at this level.

XPLR Infrastructure’s shares have declined over the past year, falling by 63%. Most of this decline occurred over the past six months when the stock fell 58%.

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