The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Chesapeake Energy whiffed on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP earnings per share expanded significantly.
Gross margins contracted, operating margins improved, net margins expanded.
Chesapeake Energy recorded revenue of $2.73 billion. The 12 analysts polled by S&P Capital IQ predicted revenue of $3.05 billion on the same basis. GAAP reported sales were 38% higher than the prior-year quarter's $1.98 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.58. The 28 earnings estimates compiled by S&P Capital IQ predicted $0.58 per share on the same basis. GAAP EPS of $0.63 for Q4 were 80% higher than the prior-year quarter's $0.35 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 38.4%, 130 basis points worse than the prior-year quarter. Operating margin was 12.4%, 350 basis points better than the prior-year quarter. Net margin was 17.3%, 600 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $2.98 billion. On the bottom line, the average EPS estimate is $0.43.
Next year's average estimate for revenue is $12.07 billion. The average EPS estimate is $1.97.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 7,474 members out of 7,671 rating the stock outperform, and 199 members rating it underperform. Among 1,634 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,601 give Chesapeake Energy a green thumbs-up, and 33 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Chesapeake Energy is outperform, with an average price target of $34.55.
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