Southwestern Energy Earnings: Falling Revenue, Profit Drops

S&P 500 (NYSE:SPY) component Southwestern Energy Co. (NYSE:SWN) reported its results for the first quarter. Southwestern Energy is an independent energy company that, through its subsidiaries, explores, develops and produces natural gas and crude oil.

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Southwestern Energy Earnings Cheat Sheet for the First Quarter

Results: Net income for the utility-gas distribution fell to $107.7 (31 cents per share) vs. $136.6 million (39 cents per share) a year earlier. This is a decline of 100% from the year-earlier quarter.

Revenue: Fell 2.9% to $656.5 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Southwestern Energy Co. fell short of the mean analyst estimate of 32 cents per share. It beat the average revenue estimate of $606.6 million.

Quoting Management: “While our production continues to grow, our earnings and cash flow decreased due to the recent drop in gas prices,” stated Steve Mueller, President and Chief Executive Officer of Southwestern Energy. “Looking ahead, we continue to respond to current prices and remain vigilant in reducing costs, keeping our balance sheet in good shape and drilling the best projects.”

Key Stats:

A year-over-year revenue decrease last quarter snaps a streak of four consecutive quarters of revenue increases. The best quarter in that span was the second quarter of the last fiscal year, which saw revenue rise 29.7%.

The profit decrease last quarter braeks a three-quarter streak of year-over-year profit increases. Net income rose 6% in the fourth quarter of the last fiscal year from the year earlier, while the figure rose 9% in the third quarter of the last fiscal year and 37.2% in the second quarter of the last fiscal year.

The company has fallen short of estimates for two consecutive quarters. In the fourth quarter of the last fiscal year, it missed expectations by 3 cents with net income of 45 cents versus a mean estimate of net income of 48 cents per share.

Looking Forward: Over the past ninety days, the average estimate for the second quarter has fallen from 42 cents per share to 29 cents, indicating that analysts are growing pessisimistic about the company’s performance next quarter. The average estimate for the fiscal year is $1.27 per share, down from $1.77 ninety days ago.

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

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