Chesapeake Energy Beats on Both Top and Bottom Lines

Chesapeake Energy (NYS: CHK) reported earnings on May 1. Here are the numbers you need to know.

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.

Revenue details
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 details
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.

Margin details
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.)

Looking ahead
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.

Investor sentiment
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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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. TMFDisclosureHere

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