Southwestern Energy Goes Negative

Southwestern Energy (NYSE: SWN  ) reported earnings on Feb. 20. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Southwestern Energy beat expectations on revenues and met expectations on earnings per share.

Compared to the prior-year quarter, revenue increased. Non-GAAP earnings per share shrank. GAAP earnings per share shrank to a loss.

Gross margins expanded, operating margins dropped, net margins contracted.

Revenue details
Southwestern Energy logged revenue of $559.5 million. The 11 analysts polled by S&P Capital IQ foresaw a top line of $545.1 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.44. The 30 earnings estimates compiled by S&P Capital IQ predicted $0.44 per share. Non-GAAP EPS of $0.44 for Q4 were 2.2% lower than the prior-year quarter's $0.45 per share. GAAP EPS were -$1.02 for Q4 compared to $0.45 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 69.8%, 50 basis points better than the prior-year quarter. Operating margin was -74.7%, 11,020 basis points worse than the prior-year quarter. Net margin was -46.0%, 6,730 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $536.1 million. On the bottom line, the average EPS estimate is $0.39.

Next year's average estimate for revenue is $2.31 billion. The average EPS estimate is $1.69.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 977 members out of 1,017 rating the stock outperform, and 40 members rating it underperform. Among 182 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 176 give Southwestern Energy a green thumbs-up, and six give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Southwestern Energy is hold, with an average price target of $39.26.

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