Chesapeake Energy Corporation (CHK) Q1 Earnings: Here’s What to Expect

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The Country Caller previews Chesapeake’s first quarter financials, scheduled for release tomorrow

Chesapeake Energy Corporation (NYSE:CHK) will release its first quarter earnings results Thursday. The results would be announced before the markets open. The Country Caller previews the performance of the $3.5 billion company through the quarter.

Chesapeake, according to the Street, is expected to report revenues of $2.55 billion. Analysts across the Street predict a substantial decline in revenues when compared to the first quarter of 2015 in which the company reported revenues of $2.76 billion. The consensus also expects Chesapeake to post a loss per share of 10 cents.

The company, in the past one year, was thrashed by selloff in the oil and gas industry. The current expectations are below the earnings of $0.11 the company posted for 1QFY15.

The latest quarter has added additional challenges for the Oklahoma-based oil and gas company. Oil prices bottomed to their 13-year lows in the first three months of the year, and made life miserable for all energy companies. Chesapeake, which already is highly-leveraged, is likely to have faced a difficult situation through the period.

According to the data compiled by Bloomberg, a total of 34 analysts currently provide ratings on the stock. Two analysts rate it as a Buy, while 21 have a Hold on it. The 12-month consensus price target for shares is $4.33, reflecting a 25.34% downside potential from its previous close of $5.80.

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