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CNX Resources Corporation. (CNX) Down 0.2% Since Last Earnings Report: Can It Rebound?

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It has been about a month since the last earnings report for CNX Resources Corporation. (CNX - Free Report) . Shares have lost about 0.2% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is CNX Resources Corporation. due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.

CNX Resources Q4 Earnings & Revenues Beat Estimates

CNX Resources Corporation reported fourth-quarter 2020 adjusted earnings of 21 cents per share, which surpassed the Zacks Consensus Estimate of 18 cents by 16.7%. Earnings also increased 75% from the year-ago figure.

Revenues

Fourth-quarter revenues of $627 million beat the Zacks Consensus Estimate of $385 million by 62.9%. The top line also increased 23.2% from the year-ago quarter.

Highlights of the Release

Average selling price for the quarter was $2.49 per Mcfe, down 1.9% from the year-ago figure of $2.54. For the reported quarter, total production costs were down 4.8% year over year to $1.58 per Mcfe due to proper cost-management measures implemented by the company.

Total fourth-quarter production volumes were 146.5 billion cubic feet equivalent, up 2.2% year over year. Interest expenses for the reported quarter were $37.6 million, up 1.3% from the year-ago period.

During the quarter, CNX Resources repurchased 4.1 million shares at an average price of $10.43 per share. Its board approved another $150 million for share buybacks, taking the share buyback authorization to $250 million.

Financial Update


As of Dec 31, 2020, CNX Resources had cash and cash equivalents of $15.6 million, down from $16.3 million on Dec 31, 2019.

Total long-term debt as of Dec 31, 2020 was $2,401.4 million, lower than $2,754.4 million on Dec 31, 2019.

Fourth-quarter 2020 cash from operating activities was $160.7 million, up 40.3% from $114.2 million in the year-ago period. Free cash flow for the year was $356 million.

Capital expenditure for 2020 was $487 million, lower than the guided range of $495-$515 million.

Guidance

CNX Resources expects capital expenditure for 2021 in the range of $430-$470 million. The company now expects 2021 production volumes in the range of 540-570 billions of cubic feet equivalent (Bcfe), up from the prior view of 490-530 Bcfe. Nearly 90% expected gas production for 2021 is hedged by the company.

The company expects free cash flow for 2021 to be $425 million.



 

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in fresh estimates.

VGM Scores

At this time, CNX Resources Corporation. has an average Growth Score of C, however its Momentum Score is doing a lot better with an A. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions looks promising. Notably, CNX Resources Corporation. has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.


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