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Factors to Note Ahead of Coterra Energy's (CTRA) Q4 Earnings
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Coterra Energy Inc. (CTRA - Free Report) is set to release fourth-quarter results on Feb 22. The current Zacks Consensus Estimate for the to-be-reported quarter is a profit of 56 cents per share on revenues of $1.5 billion.
Let’s delve into the factors that might have influenced the oil and gas exploration and production firm’s performance in the December quarter. But it’s worth taking a look at CTRA’s previous-quarter performance first.
Highlights of Q3 Earnings & Surprise History
In the last reported quarter, the Houston, TX-based upstream energy company beat the consensus mark on strong production. CTRA had reported adjusted earnings per share of 50 cents, beating the Zacks Consensus Estimate of 44 cents. However, revenues of $1.4 billion generated by the firm came in 2% below the Zacks Consensus Estimate due to weaker natural gas realizations.
Coterra Energy beat the Zacks Consensus Estimate for earnings in each of the last four quarters, resulting in an earnings surprise of 11.8% on average. This is depicted in the graph below:
The Zacks Consensus Estimate for the fourth-quarter bottom line has remained unchanged in the past seven days. The estimated figure indicates a 51.7% fall year over year. Meanwhile, the Zacks Consensus Estimate for revenues suggests a 32.4% decrease from the year-ago period.
Factors to Consider
Coterra Energy is expected to have reaped the reward of higher production during the quarter. CTRA continues to churn out an impressive output from its assets in the Permian Basin, Marcellus Shale and Anadarko Basin. In the previous quarter, the company’s production rose 4.5% year over year. The uptick is expected to have continued in the to-be-reported quarter on the back of a better well performance and improved cycle times. Consequently, the Zacks Consensus Estimate for the company’s fourth-quarter volume is pegged at some 672 thousand barrels of oil equivalent per day (MBOE/d), up handsomely from the year-ago quarter’s level of 632.2 MBOE/d.
But on a somewhat bearish note, a dip in commodity realizations might have dampened the positives associated with production gains. In the third quarter of 2023, the company’s average realized oil price decreased by 6.5% from the year-ago period, while natural gas fetched 64% less. We expect this decline to have continued in the fourth quarter, with the consensus mark for natural gas and oil pegged 49.6% and 2.4% lower year over year.
What Does Our Model Say?
The proven Zacks model does not conclusively show that Coterra Energy is likely to beat estimates in the fourth quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates. But that’s not the case here.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, for this company is -2.20%.
Zacks Rank: CTRA currently carries a Zacks Rank #3.
Stocks to Consider
While an earnings beat looks uncertain for Coterra Energy, here are some firms that you may want to consider on the basis of our model:
Inter Parfums, Inc. (IPAR - Free Report) has an Earnings ESP of +5.71% and a Zacks Rank #2. The firm is scheduled to release earnings on Feb 27.
The 2024 Zacks Consensus Estimate for Inter Parfums indicates 8.6% year-over-year earnings per share growth. It has a trailing four-quarter earnings surprise of 45.7%, on average. Valued at around $4.9 billion, IPAR has gained 27.1% in a year.
Best Buy Co., Inc. (BBY - Free Report) has an Earnings ESP of +0.64% and a Zacks Rank #2. The firm is scheduled to release earnings on Feb 29.
Best Buy beat the Zacks Consensus Estimate for earnings in each of the last four quarters. It has a trailing four-quarter earnings surprise of 12.8%, on average. Valued at around $15.9 billion, BBY has lost 11.9% in a year.
Alignment Healthcare, Inc. (ALHC - Free Report) has an Earnings ESP of +4.55% and a Zacks Rank #3. The firm is scheduled to release earnings on Feb 27.
The 2024 Zacks Consensus Estimate for Alignment Healthcare indicates 22.3% year-over-year earnings per share growth. It has a trailing four-quarter earnings surprise of 11.3%, on average. Valued at around $1.3 billion, ALHC has gone down 33.1% in a year.
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Factors to Note Ahead of Coterra Energy's (CTRA) Q4 Earnings
Coterra Energy Inc. (CTRA - Free Report) is set to release fourth-quarter results on Feb 22. The current Zacks Consensus Estimate for the to-be-reported quarter is a profit of 56 cents per share on revenues of $1.5 billion.
Let’s delve into the factors that might have influenced the oil and gas exploration and production firm’s performance in the December quarter. But it’s worth taking a look at CTRA’s previous-quarter performance first.
Highlights of Q3 Earnings & Surprise History
In the last reported quarter, the Houston, TX-based upstream energy company beat the consensus mark on strong production. CTRA had reported adjusted earnings per share of 50 cents, beating the Zacks Consensus Estimate of 44 cents. However, revenues of $1.4 billion generated by the firm came in 2% below the Zacks Consensus Estimate due to weaker natural gas realizations.
Coterra Energy beat the Zacks Consensus Estimate for earnings in each of the last four quarters, resulting in an earnings surprise of 11.8% on average. This is depicted in the graph below:
Coterra Energy Inc. Price and EPS Surprise
Coterra Energy Inc. price-eps-surprise | Coterra Energy Inc. Quote
Trend in Estimate Revision
The Zacks Consensus Estimate for the fourth-quarter bottom line has remained unchanged in the past seven days. The estimated figure indicates a 51.7% fall year over year. Meanwhile, the Zacks Consensus Estimate for revenues suggests a 32.4% decrease from the year-ago period.
Factors to Consider
Coterra Energy is expected to have reaped the reward of higher production during the quarter. CTRA continues to churn out an impressive output from its assets in the Permian Basin, Marcellus Shale and Anadarko Basin. In the previous quarter, the company’s production rose 4.5% year over year. The uptick is expected to have continued in the to-be-reported quarter on the back of a better well performance and improved cycle times. Consequently, the Zacks Consensus Estimate for the company’s fourth-quarter volume is pegged at some 672 thousand barrels of oil equivalent per day (MBOE/d), up handsomely from the year-ago quarter’s level of 632.2 MBOE/d.
But on a somewhat bearish note, a dip in commodity realizations might have dampened the positives associated with production gains. In the third quarter of 2023, the company’s average realized oil price decreased by 6.5% from the year-ago period, while natural gas fetched 64% less. We expect this decline to have continued in the fourth quarter, with the consensus mark for natural gas and oil pegged 49.6% and 2.4% lower year over year.
What Does Our Model Say?
The proven Zacks model does not conclusively show that Coterra Energy is likely to beat estimates in the fourth quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates. But that’s not the case here.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, for this company is -2.20%.
Zacks Rank: CTRA currently carries a Zacks Rank #3.
Stocks to Consider
While an earnings beat looks uncertain for Coterra Energy, here are some firms that you may want to consider on the basis of our model:
Inter Parfums, Inc. (IPAR - Free Report) has an Earnings ESP of +5.71% and a Zacks Rank #2. The firm is scheduled to release earnings on Feb 27.
You can see the complete list of today’s Zacks #1 Rank stocks here.
The 2024 Zacks Consensus Estimate for Inter Parfums indicates 8.6% year-over-year earnings per share growth. It has a trailing four-quarter earnings surprise of 45.7%, on average. Valued at around $4.9 billion, IPAR has gained 27.1% in a year.
Best Buy Co., Inc. (BBY - Free Report) has an Earnings ESP of +0.64% and a Zacks Rank #2. The firm is scheduled to release earnings on Feb 29.
Best Buy beat the Zacks Consensus Estimate for earnings in each of the last four quarters. It has a trailing four-quarter earnings surprise of 12.8%, on average. Valued at around $15.9 billion, BBY has lost 11.9% in a year.
Alignment Healthcare, Inc. (ALHC - Free Report) has an Earnings ESP of +4.55% and a Zacks Rank #3. The firm is scheduled to release earnings on Feb 27.
The 2024 Zacks Consensus Estimate for Alignment Healthcare indicates 22.3% year-over-year earnings per share growth. It has a trailing four-quarter earnings surprise of 11.3%, on average. Valued at around $1.3 billion, ALHC has gone down 33.1% in a year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.