The 10-second takeaway
For the quarter ended March 31 (Q1), Chesapeake Energy beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. Non-GAAP earnings per share expanded significantly. GAAP earnings per share grew.
Margins expanded across the board.
Chesapeake Energy reported revenue of $3.42 billion. The eight analysts polled by S&P Capital IQ predicted revenue of $3.23 billion on the same basis. GAAP reported sales were 42% higher than the prior-year quarter's $2.42 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 $0.30. The 26 earnings estimates compiled by S&P Capital IQ forecast $0.25 per share. Non-GAAP EPS of $0.30 for Q1 were 67% higher than the prior-year quarter's $0.18 per share. GAAP EPS were $0.02 for Q1 versus -$0.11 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 34.0%, 380 basis points better than the prior-year quarter. Operating margin was 5.7%, 550 basis points better than the prior-year quarter. Net margin was 1.7%, 290 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $3.28 billion. On the bottom line, the average EPS estimate is $0.35.
Next year's average estimate for revenue is $12.58 billion. The average EPS estimate is $1.39.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 7,425 members out of 7,659 rating the stock outperform, and 234 members rating it underperform. Among 1,280 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,242 give Chesapeake Energy a green thumbs-up, and 38 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 $24.07.
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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. TMFDisclosureHere