The 10-second takeaway
For the quarter ended June 30 (Q2), Southwestern Energy missed estimates on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank significantly and GAAP earnings per share contracted to a loss.
Gross margins increased, operating margins dropped, net margins dropped.
Southwestern Energy reported revenue of $430.7 million. The seven analysts polled by S&P Capital IQ predicted net sales of $450.3 million on the same basis. GAAP reported sales were 22% lower than the prior-year quarter's $765.2 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.26. The 27 earnings estimates compiled by S&P Capital IQ averaged $0.26 per share. GAAP EPS were -$1.40 for Q2 against $0.48 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 69.3%, 260 basis points better than the prior-year quarter. Operating margin was -131.3%, 16,820 basis points worse than the prior-year quarter. Net margin was -81.4%, 10,330 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $483.6 million. On the bottom line, the average EPS estimate is $0.30.
Next year's average estimate for revenue is $1.95 billion. The average EPS estimate is $1.21.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,001 members out of 1,041 rating the stock outperform, and 40 members rating it underperform. Among 168 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 161 give Southwestern Energy a green thumbs-up, and seven give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Southwestern Energy is outperform, with an average price target of $36.63.
Is Southwestern Energy the right energy stock for you? Read about a handful of timely, profit-producing plays on expensive crude in "3 Stocks for $100 Oil." Click here for instant access to this free report.
- Add Southwestern Energy to My Watchlist.