Southwestern Energy Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Southwestern Energy (NYSE:SWN) will unveil its latest earnings on Thursday, November 1, 2012. Southwestern Energy is an independent energy company that, through its subsidiaries, explores, develops and produces natural gas and crude oil.

Southwestern Energy Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for net income of 32 cents per share, a decline of 36% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved up from 29 cents. Between one and three months ago, the average estimate moved up. It has risen from 31 cents during the last month. Analysts are projecting profit to rise by 30.8% versus last year to $1.26.

Past Earnings Performance: The company met estimates last quarter after falling short of forecasts in the prior two. Before reporting profit of 26 cents per share in the second quarter to fall in line with expectations, the company beat estimates by one cent in the first quarter.

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A Look Back: In the second quarter, the company swung to a loss of $488.1 million ($1.40 a share) from a profit of $167.5 million (48 cents) a year earlier, meeting analyst expectations. Revenue fell 21.6% to $599.7 million from $765.2 million.

Wall St. Revenue Expectations: On average, analysts predict $646.8 million in revenue this quarter, a decline of 15.7% from the year-ago quarter. Analysts are forecasting total revenue of $2.66 billion for the year, a decline of 9.8% from last year’s revenue of $2.95 billion.

Stock Price Performance: Between August 30, 2012 and October 26, 2012, the stock price had risen $3.53 (11.5%), from $30.61 to $34.14. The stock price saw one of its best stretches over the last year between February 1, 2012 and February 16, 2012, when shares rose for 12 straight days, increasing 17.1% (+$5.19) over that span. It saw one of its worst periods between September 13, 2012 and September 25, 2012 when shares fell for nine straight days, dropping 7% (-$2.49) over that span.

Key Stats:

On the top line, the company is hoping to use this earnings announcement to snap a string of two-straight quarters of revenue declines. Revenue fell 2.9% in the first quarter and dropped again in the second quarter.

Analyst Ratings: There are mostly holds on the stock with 14 of 26 analysts surveyed giving that rating.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.13 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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