Back to top

Image: Bigstock

CNX Resources to Report Third-Quarter Earnings: What's in Store?

Read MoreHide Full Article

CNX Resources Corporation (CNX - Free Report) is scheduled to release third-quarter 2024 results on Oct. 24, before market open. The company delivered an earnings surprise of 33.3% in the last reported quarter.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.

Key Factors That May Impact CNX's Q3 Results

The company’s free cash flow generation and utilization of the same are likely to have continued to reduce debts. This might have resulted in lower interest expenses in the soon-to-be-reported quarter.

It is also likely to have benefited from ongoing share repurchases. These systematic buybacks are expected to have boosted earnings during the quarter.

CNX’s bottom line is expected to have benefited from its strategic decision to delay completion activities on three Marcellus Shale pads, consisting of 11 wells, due to the oversupplied market. This might have resulted in lower production volumes and deferral in capital activity.

Q3 Expectations

The Zacks Consensus Estimate for earnings is pegged at 31 cents per share, indicating a year-over-year decrease of 11.4%. The Zacks Consensus Estimate for revenues is pinned at $393.93 million, indicating a year-over-year increase of 10.3%.

The consensus mark for total production volumes is pegged at 137.74 billion cubic feet equivalent, down 3.9% year over year.

The consensus estimate for average natural gas sales price is pinned at $1.87 per thousand cubic feet equivalent, up 14% year over year. The consensus mark for average sales price of Natural Gas Liquids is pegged at $20.54 per barrel, up 7.3% from the figure registered in the year-ago quarter.

The Zacks Consensus Estimate for the average sales price of Oil/Condensate is pinned at $65.49 per barrel, down 2.6% from the year-ago quarter’s figure.

What the Zacks Model Unveils

Our proven model does not predict an earnings beat for CNX Resources this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) increases the odds of an earnings beat. That is not the case here, as you will see below.

Earnings ESP: The company’s Earnings ESP is -7.20%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
 

CNX Resources Corporation. Price and EPS Surprise

CNX Resources Corporation. Price and EPS Surprise

CNX Resources Corporation. price-eps-surprise | CNX Resources Corporation. Quote

Zacks Rank: Currently, CNX Resources carries a Zacks Rank #3. You can see the complete list of today's Zacks #1 Rank stocks here.

Stocks to Consider

Investors may consider the following players from the same sector as these have the right combination of elements to post an earnings beat this reporting cycle.

Cheniere Energy (LNG - Free Report) is likely to come up with an earnings beat when it announces third-quarter results on Oct. 31, before market open. It has an Earnings ESP of +5.35% and a Zacks Rank #1 at present.

The Zacks Consensus Estimate for third-quarter earnings has increased 2.7% to $1.87 per share in the past 60 days. The company delivered an average earnings surprise of 55.9% in the trailing four quarters.

Energy Transfer (ET - Free Report) is expected to post an earnings beat when it announces third-quarter results on Nov. 6, after market close. It has an Earnings ESP of +7.14% and a Zacks Rank #3 at present.

The Zacks Consensus Estimate for third-quarter earnings is pinned at 32 cents per unit. The firm delivered an average earnings surprise of 5.2% in the trailing four quarters.

Plains All American Pipeline (PAA - Free Report) is likely to come up with an earnings beat when it announces third-quarter results on Nov. 8, before market open. It has an Earnings ESP of +16.88% and a Zacks Rank #3 at present.

The Zacks Consensus Estimate for earnings is pinned at 31 cents per unit. The firm delivered an average earnings surprise of 13.9% in the trailing four quarters.



 

Published in