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Coterra's (CTRA) Q1 Earnings Preview: Things to Consider
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Coterra Energy Inc. (CTRA - Free Report) is set to release first-quarter results on May 2. The current Zacks Consensus Estimate for the to-be-reported quarter is a profit of 41 cents per share on revenues of $1.4 billion.
Let’s delve into the factors that might have influenced the oil and gas exploration and production firm’s performance in the March quarter. But it’s worth taking a look at CTRA’s previous-quarter performance first.
Highlights of Q4 Earnings & Surprise History
In the last reported quarter, the Houston, TX-based upstream energy company missed the consensus mark on weaker-than-expected realizations. CTRA had reported adjusted earnings per share of 52 cents, underperforming the Zacks Consensus Estimate of 56 cents. However, revenues of $1.6 billion came in 3.5% above the Zacks Consensus Estimate due to strong production.
Coterra Energy beat the Zacks Consensus Estimate for earnings in three of the last four quarters and missed in the other, resulting in an earnings surprise of 9.3%, on average. This is depicted in the graph below:
The Zacks Consensus Estimate for the first-quarter bottom line has been revised 2.4% downward in the past seven days. The estimated figure indicates a 52.9% drop year over year. The Zacks Consensus Estimate for revenues, meanwhile, suggests a 22.2% decrease from the year-ago period.
Factors to Consider
Coterra Energy is expected to have reaped the reward of higher production during the first 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 10.3% year over year. The uptick is expected to have continued in the to-be-reported quarter on the back of better well performance and improved cycle times. Consequently, the Zacks Consensus Estimate for the company’s first-quarter volume is pegged at some 678 thousand barrels of oil equivalent per day (MBOE/d), up handsomely from the year-ago quarter’s level of 635 MBOE/d.
But on a somewhat bearish note, a dip in natural gas realizations might have dampened the positives associated with production gains. In the fourth quarter of 2023, the company’s average realized natural gas price plunged more than 58% from the year-ago period. We expect this decline to have continued in the first quarter, with the consensus mark for natural gas pegged 40% 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 first quarter of 2024. 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: CTRA has an Earnings ESP of 0.00%. This is because the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at 41 cents per share each.
Zacks Rank: Coterra Energy currently carries a Zacks Rank #3, which increases the predictive power of ESP. However, the company’s 0.00% ESP makes surprise prediction difficult this earnings season.
Stocks to Consider
While an earnings beat looks uncertain for Coterra Energy, here are some firms from the energy space that you may want to consider on the basis of our model:
ConocoPhillips (COP - Free Report) has an Earnings ESP of +2.85% and a Zacks Rank #2 (Buy). The firm is scheduled to release earnings on May 2.
ConocoPhillips beat the Zacks Consensus Estimate for earnings in three of the last four quarters and missed in the other. It has a trailing four-quarter earnings surprise of roughly 8.5%, on average. Valued at around $153.2 billion, COP has gone up 27% in a year.
EOG Resources (EOG - Free Report) has an Earnings ESP of +0.95% and a Zacks Rank #2. The firm is scheduled to release earnings on May 2.
The 2024 Zacks Consensus Estimate for EOG Resources indicates 5.2% year-over-year earnings per share growth. Valued at around $78.1 billion, EOG has gained 14.4% in a year.
TC Energy Corporation (TRP - Free Report) has an Earnings ESP of +0.76% and a Zacks Rank #3. The firm is scheduled to release earnings on May 3.
TC Energy beat the Zacks Consensus Estimate for earnings in two of the last four quarters, missed once and met in the other. It has a trailing four-quarter earnings surprise of roughly 7.1%, on average. Valued at around $36.1 billion, TRP has lost 13.2% in a year.
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Coterra's (CTRA) Q1 Earnings Preview: Things to Consider
Coterra Energy Inc. (CTRA - Free Report) is set to release first-quarter results on May 2. The current Zacks Consensus Estimate for the to-be-reported quarter is a profit of 41 cents per share on revenues of $1.4 billion.
Let’s delve into the factors that might have influenced the oil and gas exploration and production firm’s performance in the March quarter. But it’s worth taking a look at CTRA’s previous-quarter performance first.
Highlights of Q4 Earnings & Surprise History
In the last reported quarter, the Houston, TX-based upstream energy company missed the consensus mark on weaker-than-expected realizations. CTRA had reported adjusted earnings per share of 52 cents, underperforming the Zacks Consensus Estimate of 56 cents. However, revenues of $1.6 billion came in 3.5% above the Zacks Consensus Estimate due to strong production.
Coterra Energy beat the Zacks Consensus Estimate for earnings in three of the last four quarters and missed in the other, resulting in an earnings surprise of 9.3%, 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 first-quarter bottom line has been revised 2.4% downward in the past seven days. The estimated figure indicates a 52.9% drop year over year. The Zacks Consensus Estimate for revenues, meanwhile, suggests a 22.2% decrease from the year-ago period.
Factors to Consider
Coterra Energy is expected to have reaped the reward of higher production during the first 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 10.3% year over year. The uptick is expected to have continued in the to-be-reported quarter on the back of better well performance and improved cycle times. Consequently, the Zacks Consensus Estimate for the company’s first-quarter volume is pegged at some 678 thousand barrels of oil equivalent per day (MBOE/d), up handsomely from the year-ago quarter’s level of 635 MBOE/d.
But on a somewhat bearish note, a dip in natural gas realizations might have dampened the positives associated with production gains. In the fourth quarter of 2023, the company’s average realized natural gas price plunged more than 58% from the year-ago period. We expect this decline to have continued in the first quarter, with the consensus mark for natural gas pegged 40% 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 first quarter of 2024. 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: CTRA has an Earnings ESP of 0.00%. This is because the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at 41 cents per share each.
Zacks Rank: Coterra Energy currently carries a Zacks Rank #3, which increases the predictive power of ESP. However, the company’s 0.00% ESP makes surprise prediction difficult this earnings season.
Stocks to Consider
While an earnings beat looks uncertain for Coterra Energy, here are some firms from the energy space that you may want to consider on the basis of our model:
ConocoPhillips (COP - Free Report) has an Earnings ESP of +2.85% and a Zacks Rank #2 (Buy). The firm is scheduled to release earnings on May 2.
You can see the complete list of today’s Zacks #1 Rank stocks here.
ConocoPhillips beat the Zacks Consensus Estimate for earnings in three of the last four quarters and missed in the other. It has a trailing four-quarter earnings surprise of roughly 8.5%, on average. Valued at around $153.2 billion, COP has gone up 27% in a year.
EOG Resources (EOG - Free Report) has an Earnings ESP of +0.95% and a Zacks Rank #2. The firm is scheduled to release earnings on May 2.
The 2024 Zacks Consensus Estimate for EOG Resources indicates 5.2% year-over-year earnings per share growth. Valued at around $78.1 billion, EOG has gained 14.4% in a year.
TC Energy Corporation (TRP - Free Report) has an Earnings ESP of +0.76% and a Zacks Rank #3. The firm is scheduled to release earnings on May 3.
TC Energy beat the Zacks Consensus Estimate for earnings in two of the last four quarters, missed once and met in the other. It has a trailing four-quarter earnings surprise of roughly 7.1%, on average. Valued at around $36.1 billion, TRP has lost 13.2% in a year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.