We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Why Is CNX Resources Corporation. (CNX) Down 3.2% Since Last Earnings Report?
Read MoreHide Full Article
It has been about a month since the last earnings report for CNX Resources Corporation. (CNX - Free Report) . Shares have lost about 3.2% 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 its most recent earnings report in order to get a better handle on the important catalysts.
CNX Resources Q3 Earnings Beat Estimates, Revenues Lag
CNX Resources Corporation reported third-quarter 2023 operating earnings of 35 cents per share, which beat the Zacks Consensus Estimate of 26 cents by 34.6%. In the year-ago quarter, the company reported a loss of 54 cents per share.
Revenues
Third-quarter revenues of $357 million missed the Zacks Consensus Estimate of $381 million by 6.3%. The top line also decreased 25% from the prior-year quarter’s level of $476 million.
Highlights of the Release
The average selling price in the quarter was $2.49 per thousand cubic feet equivalent (Mcfe), down 23.4% from the year-ago figure of $3.25. Total production cost was $1.60 per Mcfe, down 2.4% year over year.
Total production volumes were 143.4 billion cubic feet equivalent (Bcfe), down 2% year over year. The Zacks Consensus Estimate for total production volumes was pinned at 140 Bcfe for the same quarter.
Interest expenses totaled $35.4 million in the reported quarter, up 3% year over year.
CNX Resources repurchased 2.4 million shares at an average price of $19.50 per share for a total cost of $48 million. Over the past 12 quarters, CNX repurchased approximately 31% of its outstanding shares.
The company has reduced its adjusted net debt by $385 million since third-quarter 2020.
Financial Update
As of Jun 30, 2023, CNX Resources had cash and cash equivalents of $8.7 million compared with $21.3 million on Dec 31, 2022.
Long-term debt as of Jun 30, 2023, was $1,843.8 million, lower than $2,205.7 million as of Dec 31, 2022.
Cash from operating activities totaled $206 million compared with $264.4 million in the year-ago period. Free cash flow in the reported quarter amounted to $19 million.
Capital expenditure totaled $205.6 million, higher than $133.6 million recorded in the year-ago period.
Guidance
CNX Resources continues to expect its 2023 total capital expenditure in the range of $625-$675 million.
It continues to expect its production volume in the band of 545-555 Bcfe for 2023 and at 580 Bcfe for 2024.
CNX expects free cash flow of $325 million for 2023.
Adjusted EBITDAX is anticipated in the band of $900-$1,000 million for the same year.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
The consensus estimate has shifted -21.24% due to these changes.
VGM Scores
Currently, CNX Resources Corporation. has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. However, 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 D. 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 indicates a downward shift. Notably, CNX Resources Corporation. has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Why Is CNX Resources Corporation. (CNX) Down 3.2% Since Last Earnings Report?
It has been about a month since the last earnings report for CNX Resources Corporation. (CNX - Free Report) . Shares have lost about 3.2% 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 its most recent earnings report in order to get a better handle on the important catalysts.
CNX Resources Q3 Earnings Beat Estimates, Revenues Lag
CNX Resources Corporation reported third-quarter 2023 operating earnings of 35 cents per share, which beat the Zacks Consensus Estimate of 26 cents by 34.6%. In the year-ago quarter, the company reported a loss of 54 cents per share.
Revenues
Third-quarter revenues of $357 million missed the Zacks Consensus Estimate of $381 million by 6.3%. The top line also decreased 25% from the prior-year quarter’s level of $476 million.
Highlights of the Release
The average selling price in the quarter was $2.49 per thousand cubic feet equivalent (Mcfe), down 23.4% from the year-ago figure of $3.25. Total production cost was $1.60 per Mcfe, down 2.4% year over year.
Total production volumes were 143.4 billion cubic feet equivalent (Bcfe), down 2% year over year. The Zacks Consensus Estimate for total production volumes was pinned at 140 Bcfe for the same quarter.
Interest expenses totaled $35.4 million in the reported quarter, up 3% year over year.
CNX Resources repurchased 2.4 million shares at an average price of $19.50 per share for a total cost of $48 million. Over the past 12 quarters, CNX repurchased approximately 31% of its outstanding shares.
The company has reduced its adjusted net debt by $385 million since third-quarter 2020.
Financial Update
As of Jun 30, 2023, CNX Resources had cash and cash equivalents of $8.7 million compared with $21.3 million on Dec 31, 2022.
Long-term debt as of Jun 30, 2023, was $1,843.8 million, lower than $2,205.7 million as of Dec 31, 2022.
Cash from operating activities totaled $206 million compared with $264.4 million in the year-ago period. Free cash flow in the reported quarter amounted to $19 million.
Capital expenditure totaled $205.6 million, higher than $133.6 million recorded in the year-ago period.
Guidance
CNX Resources continues to expect its 2023 total capital expenditure in the range of $625-$675 million.
It continues to expect its production volume in the band of 545-555 Bcfe for 2023 and at 580 Bcfe for 2024.
CNX expects free cash flow of $325 million for 2023.
Adjusted EBITDAX is anticipated in the band of $900-$1,000 million for the same year.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
The consensus estimate has shifted -21.24% due to these changes.
VGM Scores
Currently, CNX Resources Corporation. has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. However, 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 D. 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 indicates a downward shift. Notably, CNX Resources Corporation. has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.