Coterra Energy Looks Ahead to Fourth Quarter Results

With a market cap of $21.4 billion, Coterra Energy Inc. (CTRA) is a leading player in the energy sector. Based in Houston, the company focuses on the development, exploration, and production of oil, natural gas, and natural gas liquids across the U.S. The fourth-quarter results are set to be announced on Thursday, Feb. 27.

Analysts Predict Earnings Drop

Analysts estimate that Coterra will report a non-GAAP profit of $0.41 per share for the latest quarter, which marks a 16.3% decline from $0.49 per share during the same quarter last year. In the past year, Coterra has struggled to consistently meet earnings expectations, surpassing projections only once in the last four quarters, while missing three times. The adjusted earnings per share (EPS) for the most recent quarter dropped 36.2% year-over-year to $0.30, falling short of consensus estimates by 14.3%.

Future Earnings Expectations

For the entire fiscal year of 2024, Coterra is projected to report an adjusted EPS of $1.54, reflecting a decrease of 29.7% compared to the $2.19 recorded in fiscal 2023. However, analysts anticipate a strong rebound in fiscal 2025, with earnings expected to surge by 104.6% to reach $3.15 per share.

Stock Performance Compared to Peers

Over the past year, CTRA stock has risen nearly 16%, outperforming the Energy Select Sector SPDR Fund’s (XLE) return of 11.6%. However, it has not kept pace with the S&P 500 Index, which has surged 25.3% during the same timeframe.

Mixed Q3 Results Impact Stock

On Oct. 31, following the release of its mixed Q3 results, Coterra’s stock fell by 5.1%. The company reported a slight revenue increase to nearly $1.4 billion, which beat analysts’ expectations by 2.7%. However, its earnings fell short of the target, leading to a decline in investor confidence, especially after it lowered its full-year non-GAAP capital expenditure guidance.

Positive Outlook Amid Challenges

Despite these challenges, Coterra remains optimistic about its long-term prospects. The company raised its forecasts for oil, natural gas, and BOE production, indicating confidence in its operational strategy. Analysts show a positive outlook on CTRA, giving it an overall “Strong Buy” rating. Among the 24 analysts covering the stock, 19 are recommending a “Strong Buy,” one suggests a “Moderate Buy,” and four express a “Hold” rating. The average price target of $34 reflects a 17.2% premium over current levels.

On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.

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