The 10-second takeaway
For the quarter ended June 30 (Q2), Southwestern Energy missed estimates on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank significantly and GAAP earnings per share contracted to a loss.
Gross margins increased, operating margins dropped, net margins dropped.
Southwestern Energy reported revenue of $430.7 million. The seven analysts polled by S&P Capital IQ predicted net sales of $450.3 million on the same basis. GAAP reported sales were 22% lower than the prior-year quarter's $765.2 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 $0.26. The 27 earnings estimates compiled by S&P Capital IQ averaged $0.26 per share. GAAP EPS were -$1.40 for Q2 against $0.48 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 69.3%, 260 basis points better than the prior-year quarter. Operating margin was -131.3%, 16,820 basis points worse than the prior-year quarter. Net margin was -81.4%, 10,330 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $483.6 million. On the bottom line, the average EPS estimate is $0.30.
Next year's average estimate for revenue is $1.95 billion. The average EPS estimate is $1.21.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,001 members out of 1,041 rating the stock outperform, and 40 members rating it underperform. Among 168 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 161 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 $36.63.
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. The Motley Fool has no positions in the stocks mentioned above. 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.