Helped by revenue growth, S&P 500 (NYSE:SPY) component Chesapeake Energy Corporation (NYSE:CHK) narrowed its loss in the first quarter. Chesapeake Energy is a company that explores and develops properties for the production of crude oil and natural gas from underground reservoirs.
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Chesapeake Energy Earnings Cheat Sheet for the First Quarter
Results: Loss narrowed to $28 million (loss of 11 cents per diluted share) from $162 million (loss of 32 cents per share) in the same quarter a year earlier.
Revenue: Rose 50.1% to $2.42 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Chesapeake Energy Corporation reported adjusted net income of 18 cents per share. By that measure, the company fell short of mean estimate of 29 cents per share. It fell short of the average revenue estimate of $2.78 billion.
Quoting Management: Aubrey K. McClendon, Chesapeake’s Chairman and Chief Executive Officer, said, “We are focused on executing our transformation to a more balanced asset base between liquids and natural gas and believe our business has strong momentum despite a challenging environment with natural gas prices at 10-year lows. This quarter continued to see strong liquids production growth as we accelerate our ongoing shift to liquids, continuing success in keeping finding costs low, and the addition of a substantial amount of new proved reserves.”
Revenue has increased for four consecutive quarters. Revenue increased 38.1% to $2.73 billion in the fourth quarter of the last fiscal year. The figure rose 54.1% in the third quarter of the last fiscal year from the year earlier and climbed 64.9% in the second quarter of the last fiscal year from the year-ago quarter.
The company’s loss in the latest quarter follows profits in the previous three quarters. The company reported a profit of $473 million in the fourth quarter of the last fiscal year, a profit of $922 million in the third quarter of the last fiscal year and $510 million in the second of the last fiscal year.
The company fell short of estimates last quarter after being in line with expectations the quarter before with net income of 58 cents.
Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the second quarter has moved down from 53 cents a share to 37 cents over the last ninety days. At $1.41 per share, the average estimate for the fiscal year has fallen from $2.10 ninety days ago.
(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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