The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Chesapeake Energy beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly. Non-GAAP earnings per share contracted significantly. GAAP earnings per share contracted significantly.
Gross margins dropped, operating margins increased, net margins contracted.
Chesapeake Energy recorded revenue of $3.54 billion. The 13 analysts polled by S&P Capital IQ foresaw revenue of $3.08 billion on the same basis. GAAP reported sales were 30% higher than the prior-year quarter's $2.73 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 $0.26. The 31 earnings estimates compiled by S&P Capital IQ predicted $0.14 per share. Non-GAAP EPS of $0.26 for Q4 were 55% lower than the prior-year quarter's $0.58 per share. GAAP EPS of $0.39 for Q4 were 38% lower than the prior-year quarter's $0.63 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 38.6%, 200 basis points worse than the prior-year quarter. Operating margin was 15.3%, 290 basis points better than the prior-year quarter. Net margin was 8.5%, 880 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $3.39 billion. On the bottom line, the average EPS estimate is $0.24.
Next year's average estimate for revenue is $13.56 billion. The average EPS estimate is $1.36.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 7,453 members out of 7,684 rating the stock outperform, and 231 members rating it underperform. Among 1,426 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,387 give Chesapeake Energy a green thumbs-up, and 39 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 $23.78.
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