The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Southwestern Energy missed slightly on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue improved and GAAP earnings per share increased.
Margins shrank across the board.
Southwestern Energy reported revenue of $538.3 million. The nine analysts polled by S&P Capital IQ expected a top line of $547.5 million on the same basis. GAAP reported sales were 11% higher than the prior-year quarter's $670.4 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 $0.45. The 26 earnings estimates compiled by S&P Capital IQ predicted $0.48 per share. GAAP EPS of $0.45 for Q4 were 4.7% higher than the prior-year quarter's $0.43 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 69.3%, 10 basis points worse than the prior-year quarter. Operating margin was 35.5%, 280 basis points worse than the prior-year quarter. Net margin was 21.3%, 100 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $538.1 million. On the bottom line, the average EPS estimate is $0.34.
Next year's average estimate for revenue is $2.37 billion. The average EPS estimate is $1.52.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 984 members out of 1,019 rating the stock outperform, and 35 members rating it underperform. Among 205 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 202 give Southwestern Energy a green thumbs-up, and three 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 $44.31.
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.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.