Chesapeake Energy Earnings Preview: Street Expectations

Chesapeake Energy Earnings Preview: Street Expectations

Chesapeake Energy Earnings Preview: Street Expectations

Chesapeake Energy Corporation (NYSE:CHK), the second largest crude oil and natural gas producer in the United States, and embattled by different controversies, will report its second quarter earnings on Monday, August 6, 2012.

Wall Street analysts expect that the company’s second quarter earnings per share for 2012 will decline by 90.8 percent, compared with its earnings during the same period in 2011. The average analysts estimate is 7 cents per share, from the previous 76 cents per share.

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According to the Wall St. Cheat Sheet, the average earnings estimate for the company for the past three months was 35 cents. Last month, the average 12 cents expectations fell.  Average analysts expect Chesapeake Energy Corporation (NYSE:CHK)’s profit will increase by 86.4 percent, compared with last year’s 38 cents.

During the first quarter, the company reported $94 million profit, or 18 cents lower than the 29 cents average analysts estimate. The company also reported a net loss to common stockholders of $ 71 million, or 11 cents per fully diluted common share, during the first quarter of 2012. A year ago, Chesapeake Energy Corporation (NYSE:CHK), reported $162 million loss, or 32 cents during the same period.

Wall Street analysts expect Chesapeake’s revenue will decline by 27 percent. Chesapeake Energy Corporation (NYSE:CHK), reported $2.42 billion revenue last quarter, a 50 percent increase, compared with its $1.61 billion revenue during the same period a year ago.

Chesapeake Energy Corporation (NYSE:CHK), recorded an average revenue growth of 51.8 percents during the last four quarters. Its stock value increased by 13.9 percent, from $16.52 per share to $18.82 per share, between June 4, 2012 to July 31, 2012.

Chesapeake’s shares are trading at $18.50 per share, up by 3.12 percent on Friday (1:00 PM ET). Fifteen analysts gave a hold rating on the stock.

The company is striving hard to boost its investors’ confidence amid numerous controversies. In a previous statement, Mason Hawkins, CEO of Southern Asset Management, which holds the largest share in Chesapeake, expressed confidence in the new leadership of the company. According to him, the newly appointed members of the Chesapeake Energy Corporation (NYSE:CHK), board make up “one of the best and most vested independent boards that we have seen.”

Hawkins, together with Carl Icahn, the second largest investor in Chesapeake Energy Corporation (NYSE:CHK), pushed for governance changes in the company’s leadership.


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