The 10-second takeaway
For the quarter ended March 31 (Q1), Southwestern Energy missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue dropped slightly and GAAP earnings per share shrank significantly.
Gross margins expanded, operating margins dropped, net margins shrank.
Southwestern Energy logged revenue of $466.3 million. The nine analysts polled by S&P Capital IQ foresaw sales of $482.2 million on the same basis. GAAP reported sales were 2.9% lower than the prior-year quarter's $676.3 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 $0.31. The 28 earnings estimates compiled by S&P Capital IQ predicted $0.32 per share. GAAP EPS of $0.31 for Q1 were 21% lower than the prior-year quarter's $0.39 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 68.4%, 200 basis points better than the prior-year quarter. Operating margin was 28.3%, 610 basis points worse than the prior-year quarter. Net margin was 16.4%, 380 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $476.2 million. On the bottom line, the average EPS estimate is $0.28.
Next year's average estimate for revenue is $2.05 billion. The average EPS estimate is $1.29.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 999 members out of 1,041 rating the stock outperform, and 42 members rating it underperform. Among 178 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 171 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 $39.07.
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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.