The 10-second takeaway
For the quarter ended March 31 (Q1), Chesapeake Energy whiffed on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP loss per share shrank.
Margins improved across the board.
Chesapeake Energy logged revenue of $2.42 billion. The 10 analysts polled by S&P Capital IQ foresaw net sales of $2.71 billion on the same basis. GAAP reported sales were 50% higher than the prior-year quarter's $1.61 billion.
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 $0.18. The 32 earnings estimates compiled by S&P Capital IQ averaged $0.28 per share. GAAP EPS were -$0.11 for Q1 against -$0.32 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 30.2%, 1,360 basis points better than the prior-year quarter. Operating margin was 0.2%, 1,810 basis points better than the prior-year quarter. Net margin was -1.2%, 880 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $2.83 billion. On the bottom line, the average EPS estimate is $0.34.
Next year's average estimate for revenue is $11.64 billion. The average EPS estimate is $1.41.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 7,492 members rating the stock outperform and 232 members rating it underperform. Among 1,433 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,393 give Chesapeake Energy a green thumbs-up, and 40 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 $28.48.
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