Chesapeake Energy Earnings: Revenue Drop Drags Shares Lower

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S&P 500 (NYSE:SPY) component Chesapeake Energy Corporation (NYSE:CHK) reported its results for the third 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 Corporation Earnings Cheat Sheet

Results: Reported a loss of $2.06 billion ($3.19 per diluted share) in the quarter. Chesapeake Energy Corporation had a net income of $879 million or $1.23 per share in the year-earlier quarter.

Revenue: Fell 25.3% to $2.97 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Chesapeake Energy Corporation reported adjusted net income of 10 cents per share. By that measure, the company beat the mean estimate of 9 cents per share. It beat the average revenue estimate of $2.78 billion.

Key Stats:

A year-over-year revenue decrease last quarter breaks a four-quarter streak of revenue increases. The best quarter in that span was the third quarter of the last fiscal year, which saw revenue rise 54.1%.

The company trumped estimates last quarter after falling shy in the two quarters prior. In the second quarter, it missed the mark by 2 cents, and in the first quarter, it came in under estimates by 11 cents.

Looking Forward: For next quarter, analysts have a more positive outlook about the company’s expected results. The average estimate for the fourth quarter is 12 cents per share, up from 10 cents ninety days ago. The average estimate for the fiscal year is 47 cents per share, a rise from 39 cents ninety days ago.

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

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