How Has Southwestern Energy’s Stock Fared ahead of 4Q15 Earnings?
What Do Analysts Expect for Southwestern Energy's 4Q15 Earnings?
Southwestern Energy’s stock is in a falling trend
Falling crude oil and natural gas prices over the last year have been weighing on the entire upstream sector. As seen in the chart below, Southwestern Energy Company’s (SWN) stock is in a falling trend.
SWN’s stock performance before 4Q15 earnings
Recently, SWN has shown considerable strength when compared with other natural gas producers. In the last two months, SWN’s stock has risen ~60%. This contrasts with the ISE-Revere Natural Gas Index (FCG), which has fallen ~10% during the same period.
However, in 2015, SWN underperformed bigger upstream companies from the SPDR S&P 500 ETF (SPY). In 2015, SWN fell ~74%, whereas Occidental Petroleum (OXY), Pioneer Natural Resources (PXD), and EOG Resources (EOG) fell ~13%, ~16%, and ~23%, respectively.
SWN’s stock performance after past earnings
SWN reported its 3Q15 earnings after the market closed on October 22, 2015. In 3Q15, excluding one-time items, SWN reported earnings per share of $0.01, $0.04 better than the consensus estimate of a loss of $0.03 per share. Despite better-than-expected earnings, SWN’s stock fell ~10% in three trading sessions.
A similar contradictory reaction was observed after 4Q14 earnings, when SWN’s stock fell ~18% in eight sessions even after the company beat the consensus earnings estimate by $0.01 per share.
SWN’s reaction to 2Q15 earnings was negative, with SWN’s stock falling ~10% in seven trading sessions after the company missed the consensus earnings estimate by $0.07 per share.
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