How did HUSA's Q3 earnings surprise investors?

Houston American Energy (HUSA) reported disappointing Q3 earnings, reflecting broader challenges in the energy sector and intensifying investor concerns:

1. **Revenue Decline**: HUSA's revenue for the quarter was only $0.12 million. This is a significant drop from the previous year, indicating a sharp decline in the company's profitability and operational efficiency.
2. **Negative Net Margin**: The company reported a negative net margin of 467.84% for the quarter. This is a stark indicator of the company's inability to generate profit from its operations, further exacerbating investor worries about its financial health.
3. **Return on Equity**: HUSA also reported a negative return on equity (ROE) of 3.90% for the quarter. ROE is a measure of the company's profitability in relation to shareholders' equity, and a negative value suggests that the company is not only unprofitable but is also failing to generate returns for its shareholders.
4. **Stock Performance**: HUSA's stock has been under pressure, hitting a 52-week low of $1.14, reflecting investor disappointment and market skepticism about the company's future prospects.

Overall, HUSA's Q3 earnings report painted a bleak picture for the company, with alarming declines in revenue, profitability, and shareholder returns. These factors combined to create a significant earnings surprise that likely left investors feeling frustrated and uncertain about the company's future direction.