Will Southwestern Energy Report Higher Profits in 4Q17?

Southwestern Energy’s 4Q17 net income estimates

Southwestern Energy (SWN) is set to report its 4Q17 and 2017 earnings after the market closes on March 1, 2018. For 4Q17, excluding any one-time items, the current consensus net income estimate for Southwestern Energy is ~$51 million. On a YoY (year-over-year) basis, SWN is expected to report ~31% higher profits than its 4Q16 adjusted net income of ~$39 million.

Even on a sequential basis and excluding any one-time items, SWN’s 4Q17 consensus net income estimate is ~76% higher than its profit of ~$29 million in 3Q17.

Will Southwestern Energy Report Higher Profits in 4Q17?

Thus, based on the current consensus net income estimate, SWN is expected to report a sixth consecutive quarterly profit in 4Q17. Let’s take a look at SWN’s 4Q17 EPS (earnings per share) estimates.

Southwestern Energy’s 4Q17 EPS estimates

For 4Q17, excluding any one-time items, Wall Street analysts’ current consensus EPS estimate for SWN is $0.09. On a YoY basis, Southwestern Energy’s 4Q17 current consensus EPS estimate is $0.01 higher than its 4Q16 adjusted EPS of $0.08. Sequentially, SWN’s 4Q17 current consensus EPS estimate is $0.06 higher than it was in 3Q17.

Southwestern Energy’s 2017 estimates

For 2017, excluding any one-time items, Wall Street analysts expect Southwestern Energy to report an adjusted net income of ~$221 million, or $0.43 per share, compared to its net income of ~-$7 million, or -$0.01 per share, in 2016.

Throughout 2017, SWN was among the worst-performing upstream companies with a ~-48% return. SWN broadly underperformed the SPDR S&P Oil and Gas Exploration & Production ETF (XOP), which represents an index of stocks across the energy industry. XOP has ~79.3% exposure to the oil and gas exploration and production industry. XOP fell ~8% in 2017. To learn more about best and worst upstream stock performers in 2017, check out Market Realist’s The Best and Worst Upstream Companies by Year-to-Date Returns.

In this series. . .

Having analyzed SWN’s 4Q17 earnings expectations, throughout this series, we’ll also look at SWN’s revenue expectations, production guidance, and cash flow estimates. We’ll also examine the odds of its beating its EPS expectations.