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Can Higher Prices Give a Boost to Coterra (CTRA) Q2 Earnings?
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Coterra Energy Inc. (CTRA - Free Report) is set to release second-quarter results on Aug 2. The current Zacks Consensus Estimate for the to-be-reported quarter is a profit of $1.20 per share on revenues of $2.2 billion.
Let’s delve into the factors that might have influenced the oil and gas exploration and production firm’s performance in the June quarter. But it’s worth taking a look at CTRA’s previous-quarter performance first.
Highlights of Q1 Earnings & Surprise History
In the last-reported quarter, the Houston, TX-based upstream energy company beat the consensus mark due to robust commodity prices and strong execution. CTRA had reported adjusted earnings per share of $1.01, 20 cents higher than the Zacks Consensus Estimate. However, revenues of $1.7 billion generated by the firm came in below the Zacks Consensus Estimate of $1.8 billion as natural gas production fell slightly from the year-ago period.
CTRA missed the Zacks Consensus Estimate in three of the last four quarters, which resulted in an earnings surprise of 0.32%, on average. This is depicted in the graph below:
The Zacks Consensus Estimate for the second-quarter bottom line has been revised 0.8% downward in the past seven days. The estimated figure indicates a 361.5% jump year over year. The Zacks Consensus Estimate for revenues, meanwhile, suggests a 580% surge from the year-ago period.
Factors to Consider
CTRA is likely to have cashed in on the surge in hydrocarbon realizations. In the previous three-month period, Coterra’s average realized unit prices for oil, natural gas and natural gas liquids were $93.45, $4.33 and $37.87, respectively, well above the year-ago levels. The increase in price is most likely to have continued in the to-be-reported quarter, with oil/gas revisiting their multi-year highs following geopolitical tensions and the tight energy fundamentals. This price boost is likely to have buoyed the second-quarter revenues and cash flows of Coterra.
Coterra is also expected to have benefited from a higher margin during the quarter. In the previous three-month period, the company’s unit exploration costs and merger-related expenses fell 21.4% and 70.7%, respectively.The downtrend is most likely to have continued in the to-be-reported quarter, thanks to CTRA’s best-in-class cost structure. This margin boost is likely to have buoyed the second-quarter revenues and cash flows of the company.
Why a Likely Positive Surprise?
Our proven model predicts an earnings beat for CTRA this season. 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.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Coterra has an Earnings ESP of +4.51% and a Zacks Rank #3.
Other Stocks to Consider
Coterra is not the only energy company looking up this earnings cycle. Here are some other firms from the space that you may want to consider on the basis of our model:
Delek US Holdings, Inc. (DK - Free Report) has an Earnings ESP of +4.07% and a Zacks Rank #1. The firm is scheduled to release earnings on Aug 4.
For 2022, Delek US Holdings has a projected earnings growth rate of 353.5%. Valued at around $2.4 billion, DK has gained around 55.7% in a year.
Cactus, Inc. (WHD - Free Report) has an Earnings ESP of +3.74% and a Zacks Rank #2. The firm is scheduled to release earnings on Aug 4.
Cactus topped the Zacks Consensus Estimate by an average of 4.3% in the trailing four quarters, including a 3.5% beat in Q1. WHD has gained some 13% in a year.
ConocoPhillips (COP - Free Report) has an Earnings ESP of +1.21% and a Zacks Rank #3. The firm is scheduled to release earnings on Aug 4.
For 2022, ConocoPhillips has a projected earnings growth rate of 143.6%. Valued at around $126 billion, COP has gained around 75.9% in a year.
Image: Bigstock
Can Higher Prices Give a Boost to Coterra (CTRA) Q2 Earnings?
Coterra Energy Inc. (CTRA - Free Report) is set to release second-quarter results on Aug 2. The current Zacks Consensus Estimate for the to-be-reported quarter is a profit of $1.20 per share on revenues of $2.2 billion.
Let’s delve into the factors that might have influenced the oil and gas exploration and production firm’s performance in the June quarter. But it’s worth taking a look at CTRA’s previous-quarter performance first.
Highlights of Q1 Earnings & Surprise History
In the last-reported quarter, the Houston, TX-based upstream energy company beat the consensus mark due to robust commodity prices and strong execution. CTRA had reported adjusted earnings per share of $1.01, 20 cents higher than the Zacks Consensus Estimate. However, revenues of $1.7 billion generated by the firm came in below the Zacks Consensus Estimate of $1.8 billion as natural gas production fell slightly from the year-ago period.
CTRA missed the Zacks Consensus Estimate in three of the last four quarters, which resulted in an earnings surprise of 0.32%, 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 second-quarter bottom line has been revised 0.8% downward in the past seven days. The estimated figure indicates a 361.5% jump year over year. The Zacks Consensus Estimate for revenues, meanwhile, suggests a 580% surge from the year-ago period.
Factors to Consider
CTRA is likely to have cashed in on the surge in hydrocarbon realizations. In the previous three-month period, Coterra’s average realized unit prices for oil, natural gas and natural gas liquids were $93.45, $4.33 and $37.87, respectively, well above the year-ago levels. The increase in price is most likely to have continued in the to-be-reported quarter, with oil/gas revisiting their multi-year highs following geopolitical tensions and the tight energy fundamentals. This price boost is likely to have buoyed the second-quarter revenues and cash flows of Coterra.
Coterra is also expected to have benefited from a higher margin during the quarter. In the previous three-month period, the company’s unit exploration costs and merger-related expenses fell 21.4% and 70.7%, respectively.The downtrend is most likely to have continued in the to-be-reported quarter, thanks to CTRA’s best-in-class cost structure. This margin boost is likely to have buoyed the second-quarter revenues and cash flows of the company.
Why a Likely Positive Surprise?
Our proven model predicts an earnings beat for CTRA this season. 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.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Coterra has an Earnings ESP of +4.51% and a Zacks Rank #3.
Other Stocks to Consider
Coterra is not the only energy company looking up this earnings cycle. Here are some other firms from the space that you may want to consider on the basis of our model:
Delek US Holdings, Inc. (DK - Free Report) has an Earnings ESP of +4.07% and a Zacks Rank #1. The firm is scheduled to release earnings on Aug 4.
You can see the complete list of today’s Zacks #1 Rank stocks here.
For 2022, Delek US Holdings has a projected earnings growth rate of 353.5%. Valued at around $2.4 billion, DK has gained around 55.7% in a year.
Cactus, Inc. (WHD - Free Report) has an Earnings ESP of +3.74% and a Zacks Rank #2. The firm is scheduled to release earnings on Aug 4.
Cactus topped the Zacks Consensus Estimate by an average of 4.3% in the trailing four quarters, including a 3.5% beat in Q1. WHD has gained some 13% in a year.
ConocoPhillips (COP - Free Report) has an Earnings ESP of +1.21% and a Zacks Rank #3. The firm is scheduled to release earnings on Aug 4.
For 2022, ConocoPhillips has a projected earnings growth rate of 143.6%. Valued at around $126 billion, COP has gained around 75.9% in a year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.