Coterra Energy Poised for Q3 Earnings Release Amid Market Challenges

With a market cap of $17.9 billion, Coterra Energy Inc. (CTRA) is a significant player in the oil and gas sector. The company specializes in the development, exploration, and production of natural gas, oil, and natural gas liquids across the United States. Coterra’s key assets are located in the Marcellus Shale, Permian Basin, and Anadarko Basin, allowing it to cater to a variety of energy markets. Investors are awaiting the fiscal Q3 earnings results, scheduled for release after the market closes on Thursday, Oct. 31.

Analyst Expectations and Recent Trends

Analysts project that CTRA will report a profit of $0.37 per share, reflecting a decline of 21.3% from last year’s $0.47 per share. Recently, the company has had a mixed performance, beating Wall Street’s bottom-line estimates in two of the last four quarters, while missing expectations in the other two. In its latest quarter, Coterra missed the consensus EPS estimate by 12.5%.

2024 Projections and Future Outlook

Looking ahead to fiscal 2024, analysts expect an EPS of $1.70, which is down 22.4% from $2.19 in fiscal 2023. Nevertheless, forecasts for fiscal 2025 appear more positive, with an anticipated rebound leading to a 40.6% year-over-year increase to an estimated $2.39.

Performance Compared to the Market

Over the past 52 weeks, CTRA stock has declined by 20.3%, falling behind the S&P 500 Index’s ($SPX) 35.7% rise and the Energy Select Sector SPDR Fund’s (XLE) 1.9% dip during the same time frame.

Q2 Earnings Release and Future Projections

The release of Coterra Energy’s Q2 earnings on Aug. 1 saw the stock drop by 5.1%. The decrease followed weaker-than-expected adjusted earnings of $0.37 per share. This decline can largely be attributed to decreasing natural gas prices, which fell from $1.65 per mcf to $1.26 per mcf compared to the previous year. In the Permian Basin, prices even dropped below zero. Though total production saw a slight increase, rising operational costs hindered profitability.

Analysts’ Recommendations and Price Targets

Despite recent challenges, analysts maintain a positive outlook on Coterra Energy stock, giving it a “Strong Buy” rating overall. Among the 23 analysts covering the stock, there are 18 “Strong Buys,” one “Moderate Buy,” and four “Holds.” The average analyst price target for CTRA is $30.92, indicating a potential upside of 30.2% from current levels.

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On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are for informational purposes only. For more information, please refer to the Barchart Disclosure Policy here.

The views expressed herein are the views of the author and do not necessarily reflect those of Nasdaq, Inc.