Chesapeake Earnings Preview 3QFY15

The oil company is to report more losses in the upcoming earnings report where the analysts have turned rather bearish towards its stock.

Chesapeake Energy Corporation is one of those energy companies in the United States which has faced some serious series of ups and down on the stock index due to the increasing and decreasing oil prices in the international market, which is why the past few quarters for energy giants have been a little too difficult to manage. The recent events which have taken place on a global level with the demand of the crude oil falling in one of the most important buyer namely China also turned down the oil business on a huge level apart from the fact that the US has been having issues with the Saudis as well. All of these event have resulted in the crude oil falling from a per barrel value of $110 to a current price of $46, something which has raised great concerns of analysts and investors in the oil digging company. Oil and gas services provider, Chesapeake is, however, all set to announce its earnings to the market on Wednesday before the opening bell of the day and the expectations which have been circulating in the market have turned out to be rather on the negative side because the company seems to be working on a much lower level than it should have been, despite the uncertainty in the global market. The oil company has not only reported poor sales results in the last quarter but the fact that it has also experienced a dip on the index by a colossal 66.41% has turned out to be a rather bearish news for the investors to react on. The expected revenue for the coming quarter, according to the consensus estimations made by the Street analysts is to come around $2.95 billion. This shows that a dip is to be observed by the company where the revenue is concerned by 2.64% whereas if compared to the previous year, the loss will be come around 48.20%. The adjusted loss to be reported by the oil digging company is to come around at $0.13 and the EPS that was previously informed by the giant was noted down at $0.38. Around 34 analysts in the market have covered the Chesapeake stock and 21 of them have given it a ‘hold’ rating while 8 suggested a ‘sell’ rating to the shares.