Chesapeake Energy Beats on Both Top and Bottom Lines
Chesapeake Energy (NYS: CHK) reported earnings on Feb. 21. Here are the numbers you need to know.
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.
Is Chesapeake 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 Chesapeake Energy to My Watchlist.
The article Chesapeake Energy Beats on Both Top and Bottom Lines originally appeared on Fool.com.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 ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has the following options: Long Jan 2014 $20 Calls on Chesapeake Energy, Long Jan 2014 $30 Calls on Chesapeake Energy, and Short Jan 2014 $15 Puts on Chesapeake Energy. 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
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.