Coterra Energy Faces Market Challenges Amid Mixed Earnings Results
Houston-based Coterra Energy Inc. (CTRA), an independent oil and gas firm, is focused on the development, exploration, and production of oil, natural gas, and natural gas liquids. With a market capitalization of $18.1 billion, the company prioritizes the protection of air quality, water resources, and the land where it operates.
CTRA Stock Underperforms Market Benchmarks
Over the past year, shares of CTRA have considerably lagged behind the broader market. The stock has fallen 8.6%, while the S&P 500 Index ($SPX) has climbed nearly 36.8%. Year-to-date in 2024, CTRA is down 3.7%, contrasting with the SPX’s impressive 25.7% gain.
However, when compared to the SPDR S&P Oil & Gas Exploration & Production ETF (XOP), CTRA’s underperformance appears somewhat less severe. This exchange-traded fund has posted a gain of approximately 2.5% in the past year, with year-to-date returns of 2.3%, which surpass the stock’s performance.
Earnings Miss Expectations Despite Revenue Beat
On October 31, CTRA’s shares closed slightly lower following the release of its Q3 results. The company’s adjusted earnings per share (EPS) was $0.32, falling short of Wall Street’s forecast of $0.34. In contrast, its revenue of $1.4 billion exceeded analyst predictions of $1.3 billion.
Looking ahead to the current fiscal year ending in December, analysts project a 29.7% decline in CTRA’s EPS to $1.54 on a diluted basis. The company’s track record of meeting earnings estimates has been mixed, missing expectations in three of the last four quarters, while managing to beat forecasts once.
Analysts Remain Optimistic on CTRA
Among the 23 analysts tracking CTRA, a consensus of “Strong Buy” prevails, supported by 18 “Strong Buy” ratings, one “Moderate Buy,” and four “Holds.” This outlook has improved over the past three months, as only 17 analysts previously recommended a “Strong Buy.”
On November 4, Piper Sandler Companies (PIPR) maintained an “Overweight” rating while increasing the price target for CTRA to $32, indicating a potential upside of 30.2% from current levels. The mean price target of $30.54 corresponds to a 24.2% premium over CTRA’s present price, while the highest analyst target of $37 suggests an ambitious upside of 50.5%.
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On the date of publication, Neha Panjwani 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.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
