Yahoo Finance Did Southwestern Energy’s 1Q16 Earnings Beat Analysts’ Estimates?
Did Southwestern Energy's 1Q16 Earnings Beat Analysts' Estimates?
Southwestern Energy’s 1Q16 earnings beat estimates
Southwestern Energy (SWN) announced its 1Q16 earnings after the Market closed on April 21, 2016. SWN reported an adjusted loss per share of $0.08, which was $0.13 better than Wall Street analysts’ consensus estimate of a loss per share of $0.21. SWN’s 1Q16 earnings were $0.30 per share lower than the 1Q15 profit of $0.22 per share. SWN’s 1Q16 earnings were also $0.06 per share lower than earnings in 4Q15.
Southwestern Energy’s 1Q16 revenues beat estimates
In 1Q16, SWN reported adjusted revenues of $587 million, ~10% better than Wall Street analysts’ consensus estimate of ~$534 million. SWN’s 1Q16 revenues were ~37% lower than 1Q15 revenues of $933 million and ~22% lower than 4Q15 revenues.
SWN’s earnings trend
As seen in the above chart, Southwestern Energy reported much lower earnings in 2015 due to lower realized natural gas (UNG) (UGAZ) (DGAZ) prices. In 2Q15, SWN saw its adjusted earnings turn negative for the first time since 2008. Since 1Q13, SWN has beaten earnings expectations ~66% of the time.
Due to the steep drop in energy prices, almost all S&P 500 (SPY) upstream companies saw their revenues fall. Devon Energy (DVN), Marathon Oil (MRO), ConocoPhillips (COP), and Newfield Exploration (NFX) saw their adjusted revenues fall ~52%, ~41%, ~40%, and ~27%, respectively, in 4Q15 on a year-over-year basis. The SPDR S&P Oil & Gas Exploration & Production ETF (XOP) generally invests at least 80% of its total assets in oil and gas exploration companies, whereas the Energy Select Sector SPDR Fund (XLE) generally invests at least 95% of its total assets in oil and gas companies.
What to look for in this series
In this series, we’ll look at Southwestern Energy’s operational performance and Wall Street analysts’ ratings of its stock. We’ll also look at how Southwestern Energy’s stock reacted to 1Q16 earnings. We’ll start with SWN’s operational performance in 1Q16 in the next part of this series.
Browse this series on Market Realist:
