The 10-second takeaway
For the quarter ended March 31 (Q1), Southwestern Energy missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew. Non-GAAP earnings per share grew significantly. GAAP earnings per share expanded significantly.
Gross margins dropped, operating margins grew, net margins expanded.
Southwestern Energy notched revenue of $509.8 million. The 10 analysts polled by S&P Capital IQ predicted sales of $529.4 million on the same basis. GAAP reported sales were 12% higher than the prior-year quarter's $656.5 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 $0.42. The 35 earnings estimates compiled by S&P Capital IQ averaged $0.38 per share. Non-GAAP EPS of $0.42 for Q1 were 35% higher than the prior-year quarter's $0.31 per share. GAAP EPS of $0.36 for Q1 were 16% higher than the prior-year quarter's $0.31 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 66.7%, 170 basis points worse than the prior-year quarter. Operating margin was 34.3%, 600 basis points better than the prior-year quarter. Net margin was 17.4%, 100 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $553.6 million. On the bottom line, the average EPS estimate is $0.49.
Next year's average estimate for revenue is $2.31 billion. The average EPS estimate is $1.89.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 977 members out of 1,018 rating the stock outperform, and 41 members rating it underperform. Among 154 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 147 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 $38.57.
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