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What's in Store for CNX Resources (CNX) in Q2 Earnings?

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CNX Resources Corporation (CNX - Free Report) is scheduled to release second-quarter 2023 results on Jul 27, before market open. The company delivered an earnings surprise of 27.3% in the last reported quarter.

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

Factors to Note

CNX Resources’ free cash flow generation and utilization of the same are likely to have helped repurchase shares and reduce debts in the second quarter. The systematic buybacks during the period is expected to boost earnings.

Stable production from Marcellus and Utica shales is likely to have enabled the company to increase its total production volume. Despite expected year-over-year improvement in production volumes, CNX Resources’ revenues might have been negatively impacted due to decreasing average selling prices of natural gas liquids, oil and natural gas in the to-be-reported quarter.

Q2 Expectations

The Zacks Consensus Estimate for second-quarter earnings is pegged at 35 cents per share, indicating a year-over-year decrease of 42.6%. The consensus mark for revenues is pinned at $427.01 million, indicating a year-over-year decline of 9.7%.

The Zacks Consensus Estimate for total production volumes is pegged at 139 billion cubic feet equivalent, up 2.3% from the previous quarter’s figure.

The consensus estimate for average gas sales price is pinned at $2.51 per thousand cubic feet equivalent, down 13.4% sequentially. The consensus mark for average sales price of natural gas liquids is pegged at $23.24 per barrel, down 15.4% from that registered in the previous quarter. The Zacks Consensus Estimate for average sales price of Oil/Condensate is pinned at $67 per barrel, down 0.5% sequentially.

What the Zacks Model Unveils

Our proven model does not conclusively 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.
 

CNX Resources Corporation. Price and EPS Surprise

CNX Resources Corporation. Price and EPS Surprise

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

Earnings ESP: The company’s Earnings ESP is -31.15%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Currently, CNX Resources carries a Zacks Rank #5 (Strong Sell).

Stocks to Consider

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

TC Energy Corporation (TRP - Free Report) is likely to report an earnings beat when it announces second-quarter results on Jul 28, before market open. It has an Earnings ESP of +11.77% and a Zacks Rank #2 at present. You can see the complete list of today's Zacks #1 Rank stocks here.

TRP’s long-term (three to five years) earnings growth rate is 4%. It delivered an average earnings surprise of 2.1% in the last four quarters.

Plains All American Pipeline (PAA - Free Report) is expected to post an earnings beat when it announces second-quarter results on Aug 4, before market open. It has an Earnings ESP of +34.62% and a Zacks Rank #3 at present.

The Zacks Consensus Estimate for PAA’s earnings is pegged at 21 cents per unit. It delivered an average earnings surprise of 11.5% in the last four quarters.

Cactus, Inc. (WHD - Free Report) is expected to come up with an earnings beat when it reports second-quarter results on Aug 7, after market close. It has an Earnings ESP of +4.41% and a Zacks Rank #3 at present.

WHD’s long-term earnings growth rate is 5.79%. It delivered an average earnings surprise of 13.6% in the last four quarters.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

 

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