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S&P 500 (NYSE:SPY) component Chesapeake Energy (NYSE:CHK) will unveil its latest earnings on Monday, August 6, 2012. Chesapeake Energy is a company that explores and develops properties for the production of crude oil and natural gas from underground reservoirs.
Chesapeake Energy Earnings Preview Cheat Sheet
Wall St. Earnings Expectations: The average estimate of analysts is for net income of 7 cents per share, a decline of 90.8% 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 35 cents. Between one and three months ago, the average estimate moved down. It also has dropped from 12 cents during the last month. Analysts are projecting profit to rise by 86.4% compared to last year’s 38 cents.
Past Earnings Performance: The company fell short of estimates last quarter after being in line with forecasts the quarter prior. In the first quarter, it reported profit of 18 cents per share versus a mean estimate of 29 cents. Two quarters ago, it reported net income of 58 cents per share.
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A Look Back: In the first quarter, the company’s loss narrowed to a loss of $28 million (11 cents a share) from a loss of $162 million (32 cents) a year earlier, but missed analyst expectations. Revenue rose 50.1% to $2.42 billion from $1.61 billion.
Wall St. Revenue Expectations: Analysts predict a decline of 28.6% in revenue from the year-earlier quarter to $2.37 billion.
Stock Price Performance: Between June 4, 2012 and July 31, 2012, the stock price had risen $2.30 (13.9%), from $16.52 to $18.82. The stock price saw one of its best stretches over the last year between May 17, 2012 and May 31, 2012, when shares rose for 10 straight days, increasing 24.7% (+$3.35) over that span. It saw one of its worst periods between November 11, 2011 and November 25, 2011 when shares fell for 10 straight days, dropping 15.2% (-$4.03) over that span.
The company enters this earnings announcement with substantial revenue momentum. The company has averaged year-over-year revenue growth of 51.8% over the last four quarters.
Analyst Ratings: There are mostly holds on the stock with 15 of 27 analysts surveyed giving that rating.
Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 0.59 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, a ratio less than one could indicate a company may have difficulty meeting current obligations.
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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)
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