The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Southwestern Energy missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank and GAAP earnings per share shrank to a loss.
Gross margins grew, operating margins dropped, net margins dropped.
Southwestern Energy reported revenue of $493.2 million. The nine analysts polled by S&P Capital IQ expected to see revenue of $523.7 million on the same basis. GAAP reported sales were 11% lower than the prior-year quarter's $767.3 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 $0.38. The 29 earnings estimates compiled by S&P Capital IQ predicted $0.33 per share. GAAP EPS were -$0.42 for Q3 compared to $0.50 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 69.2%, 40 basis points better than the prior-year quarter. Operating margin was -32.1%, 7,060 basis points worse than the prior-year quarter. Net margin was -21.1%, 4,390 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $540.7 million. On the bottom line, the average EPS estimate is $0.37.
Next year's average estimate for revenue is $1.96 billion. The average EPS estimate is $1.26.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 992 members out of 1,032 rating the stock outperform, and 40 members rating it underperform. Among 180 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 174 give Southwestern Energy a green thumbs-up, and six 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 $38.16.
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