NEW YORK (TheStreet) -- Chesapeake Energy Corp. (CHK) shares are are down 2.33% to $15.49 on heavy volume in early market trading on Wednesday despite beating analysts' EPS estimates for the quarter, as falling crude prices forced the company to swing to a first quarter net income loss.
The company reported a first quarter net loss of $3.78 billion after reporting a $374 million profit in the year ago period. Despite the net loss the company reported earnings of 11 cents per share which topped analysts' expectations for the period of 4 cents per share by 7 cents.
Revenue of $1.09 billion missed analysts $1.19 billion expectations for the period.
The company also raised its production targets for the year by 5,000 barrels to between 640,000 and 650,000 barrels of oil equivalent per day. The company reported that its first quarter production rose 14% over the previous year.
TheStreet Ratings team rates CHESAPEAKE ENERGY CORP as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate CHESAPEAKE ENERGY CORP (CHK) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and compelling growth in net income. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- You can view the full analysis from the report here: CHK Ratings Report