Roth Capital Lowers Earnings Estimates for Chesapeake Energy

Chesapeake Energy Corporation (NASDAQ:EXE) has recently come under scrutiny from analysts at Roth Capital, who have adjusted their earnings forecasts for the company for the fiscal year 2024. In a report released on October 29th, Roth Capital's analyst L. Mariani revised the earnings per share (EPS) estimate for Chesapeake Energy from a previous figure of $0.97 down to $0.83. Despite this revision, the firm has maintained a ‘Strong-Buy’ rating for the stock.

Currently, the consensus among analysts for Chesapeake Energy's full-year earnings stands at $0.72 per share. Furthermore, Roth Capital has provided projections for the company's quarterly earnings, estimating $0.90 EPS for Q1 2025, $1.27 EPS for Q4 2025, and an annual estimate of $2.53 EPS for fiscal year 2025.

Recent Earnings Performance

Chesapeake Energy released their earnings results on October 29th, where they reported an EPS of $0.16 for the recent quarter, exceeding the consensus estimate of $0.01 by a substantial $0.15. The company recorded a return on equity of 2.74% and achieved a net margin of 6.07%. Revenue for the quarter was reported at $648.00 million, which fell short of analyst expectations of $708.98 million. Notably, this revenue reflects a significant decline of 57.1% from the same quarter last year when they recorded $1.09 EPS.

Analyst Opinions

Other brokerage firms have also recently assessed Chesapeake Energy's stock. Stephens raised their price target from $85.00 to $86.00, maintaining an ‘equal weight’ rating. Bank of America initiated coverage of the stock with a ‘buy’ rating and set a target price of $114.00. Additionally, UBS Group and Citigroup have increased their price targets on the stock, with UBS raising it from $85.00 to $89.00 and Citigroup from $90.00 to $97.00. Mizuho also amended their target price for Chesapeake Energy, increasing it from $105.00 to $110.00 and providing an ‘outperform’ rating. In summary, there are currently two hold ratings, three buy ratings, and one strong buy rating from analysts on Chesapeake Energy, leading to a consensus rating of ‘Moderate Buy’ and an average price target of $99.20.

Market Performance

As of the most recent trading day, Chesapeake Energy shares opened at $83.66. The company's market capitalization stands at approximately $10.98 billion, with a price-to-earnings ratio of 51.43 and a beta value of 0.47. The stock has fluctuated within a 52-week range, with a low of $69.12 and a high of $93.58. Additionally, Chesapeake Energy's financial health is characterized by a debt-to-equity ratio of 0.20, a current ratio of 2.00, and a quick ratio of 2.16.

Dividend Announcement

Chesapeake Energy has also declared a quarterly dividend of $0.575 per share, scheduled for payment on December 4th. Shareholders on record as of November 14th will qualify for this dividend, translating to an annual dividend payout of $2.30, showcasing a yield of 2.75%. It's important to note that the company's dividend payout ratio currently stands at 141.98%.

Company Overview

Chesapeake Energy Corporation operates as an independent natural gas producer primarily within the United States and is headquartered in Oklahoma City.

Chesapeake, Earnings, Analyst