Southwestern Energy Earnings: Here’s Why the Stock is Rising Now

Southwestern Energy Co. (NYSE:SWN) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 0.51%.

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Southwestern Energy Co. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 35.48% to $0.42 in the quarter versus EPS of $0.31 in the year-earlier quarter.

Revenue: Decreased 23.15% to $504.5 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Southwestern Energy Co. reported adjusted EPS income of $0.42 per share. By that measure, the company beat the mean analyst estimate of $0.38. It missed the average revenue estimate of $665.44 million.

Quoting Management: “We had a very good first quarter, which includes posting the highest first quarter cash flow in our company’s history,” remarked Steve Mueller, President and Chief Executive Officer of Southwestern Energy. “This results from our production which grew by 11% and our constant focus on keeping our costs low. Our gross operated production in the Marcellus Shale was slower than planned early in the quarter but reached 400 MMcf of gas per day in mid-April and, as a result, we have raised our production guidance in the latter half of the year. When you add on top of this the sizeable acreage acquisition in the Marcellus we announced earlier this week and our continued optimism about our New Ventures projects, we are looking forward to delivering even more value during 2013.”

Key Stats (on next page)…

Revenue decreased 34.73% from $773 million in the previous quarter. EPS decreased 4.55% from $0.44 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 $0.37 to a profit $0.43. For the current year, the average estimate has moved up from a profit of $1.67 to a profit of $1.8 over the last ninety days.

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