Chesapeake Energy Reports Q4 Loss, Misses Revenue Estimates

Chesapeake Energy (CHK - Free Report) came out with a quarterly loss of $0.04 per share versus the Zacks Consensus Estimate of a loss of $0.06. This compares to earnings of $0.21 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of 33.33%. A quarter ago, it was expected that this natural gas company would post a loss of $0.10 per share when it actually produced a loss of $0.11, delivering a surprise of -10%.

Over the last four quarters, the company has surpassed consensus EPS estimates just once.

Chesapeake, which belongs to the Zacks Oil and Gas - Exploration and Production - United States industry, posted revenues of $969 million for the quarter ended December 2019, missing the Zacks Consensus Estimate by 20.08%. This compares to year-ago revenues of $1.73 billion. The company has topped consensus revenue estimates two times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Chesapeake shares have lost about 46.2% since the beginning of the year versus the S&P 500's decline of -3.2%.

What's Next for Chesapeake?

While Chesapeake has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

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