What to Expect from Linn Energy

Linn Energy (Nasdaq: LINE  ) is expected to report Q4 earnings on Feb. 21. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Linn Energy's revenues will increase 84.2% and EPS will shrink -21.6%.

The average estimate for revenue is $601.2 million. On the bottom line, the average EPS estimate is $0.40.

Revenue details
Last quarter, Linn Energy reported revenue of $48.3 million. GAAP reported sales were 56% higher than the prior-year quarter's $295.2 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at $0.45. GAAP EPS were -$2.18 for Q3 against $4.72 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 72.8%, 300 basis points worse than the prior-year quarter. Operating margin was -71.4%, 37,000 basis points worse than the prior-year quarter. Net margin was -93.5%, 37,720 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $1.87 billion. The average EPS estimate is $1.40.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,040 members out of 1,065 rating the stock outperform, and 25 members rating it underperform. Among 286 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 282 give Linn Energy a green thumbs-up, and four give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Linn Energy is outperform, with an average price target of $44.00.

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