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It's Showtime for Linn Energy

By Seth Jayson - Updated Apr 10, 2017 at 1:46PM

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Checking expectations

Linn Energy (Nasdaq: LINE) is expected to report Q1 earnings on April 25. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Linn Energy's revenues will increase 64.8% and EPS will shrink -4.0%.

The average estimate for revenue is $583.5 million. On the bottom line, the average EPS estimate is $0.24.

Revenue details
Last quarter, Linn Energy logged revenue of $571.2 million. GAAP reported sales were 45% higher than the prior-year quarter's $329.2 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at $0.41. GAAP EPS were -$0.83 for Q4 compared to -$1.08 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 74.8%, 190 basis points worse than the prior-year quarter. Operating margin was -18.5%, much better than the prior-year quarter. Net margin was -39.3%, much better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $3.02 billion. The average EPS estimate is $1.59.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,043 members out of 1,075 rating the stock outperform, and 32 members rating it underperform. Among 276 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 270 give Linn 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 Linn Energy is outperform, with an average price target of $44.29.

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