Chesapeake Energy Earnings: Here’s Why Investors are Happy Now

Chesapeake Energy Corporation (NYSE:CHK) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 3.43%.

Chesapeake Energy Corporation Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 750% to $0.51 in the quarter versus EPS of $0.06 in the year-earlier quarter.

Revenue: Rose 37.95% to $4.68 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Chesapeake Energy Corporation reported adjusted EPS income of $0.51 per share. By that measure, the company beat the mean analyst estimate of $0.41. It beat the average revenue estimate of $3.21 billion.

Quoting Management: Doug Lawler, Chesapeake’s Chief Executive Officer, said, “Chesapeake reported a strong quarter operationally and financially. I am very excited and energized by what I have seen during my first six weeks with the company. Chesapeake has an exceptionally broad and deep asset base, which offers tremendous opportunity for value creation. A comprehensive companywide review of our capital allocation and other processes is underway and I believe these initiatives will result in substantial further improvement in both near-term and long-term capital efficiency and returns.”

Key Stats (on next page)…

Revenue increased 36.54% from $3.42 billion in the previous quarter. EPS increased 70% from $0.30 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.38 to a profit $0.40. For the current year, the average estimate has moved up from a profit of $1.43 to a profit of $1.52 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)