Chesapeake Energy Corp Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Chesapeake Energy Corp (NYSE:CHK) will unveil its latest earnings on Thursday, November 3, 2011. Chesapeake Energy is a company that explores and develops properties for the production of crude oil and natural gas from underground reservoirs.

Chesapeake Energy Corp Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 65 cents per share, a decline of 7.1% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 70 cents. Between one and three months ago, the average estimate moved down. It also has dropped from 67 cents during the last month. For the year, analysts are projecting net income of $2.84 per share, a decline of 3.7% from last year.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 4 cents, reporting profit of 76 cents per share against a mean estimate of net income of 72 cents per share.

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Wall St. Revenue Expectations: On average, analysts predict $3.15 billion in revenue this quarter, a rise of 22.1% from the year ago quarter. Analysts are forecasting total revenue of $11.4 billion for the year, a rise of 21.7% from last year’s revenue of $9.37 billion.

Analyst Ratings: 17 out of 30 analysts surveyed (56.7%) have a buy rating on Chesapeake Energy.. This is below the mean analyst rating of 10 competitors, which average 67.5% buy ratings.

A Look Back: In the second quarter, profit rose twofold to $510 million (68 cents a share) from $255 million (37 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 64.9% to $3.32 billion from $2.01 billion.

Key Stats:

A year-over-year revenue increase in the second quarter snapped a streak of two consecutive quarters of revenue declines. Revenue fell 42.4% in the first quarter and 11.1% in the fourth quarter of the last fiscal year.

Competitors to Watch: Gastar Exploration Ltd. (AMEX:GST), Anadarko Petroleum Corp. (NYSE:APC), Devon Energy Corporation (NYSE:DVN), Bronco Drilling Co., Inc. (NASDAQ:BRNC), EOG Resources, Inc. (NYSE:EOG), Exxon Mobil Corporation (NYSE:XOM), Chevron Corporation (NYSE:CVX), Apache Corporation (NYSE:APA), and US Natural Gas Corp. (NYSE:UNG).

Stock Price Performance: During September 30, 2011 to October 28, 2011, the stock price had risen $4.19 (16.4%) from $25.55 to $29.74. The stock price saw one of its best stretches over the last year between January 4, 2011 and January 12, 2011 when shares rose for seven-straight days, rising 6.3% (+$1.65) over that span. It saw one of its worst periods between September 16, 2011 and September 23, 2011 when shares fell for six-straight days, falling 18.2% (-$5.76) over that span. Shares are up $4.05 (+15.8%) year to date.

(Source: Xignite Financials)

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