What Investors Should Know About Coterra Energy's Earnings
What to Expect from Coterra Energy's Earnings
Coterra Energy (NASDAQ: CTRA) is poised to announce its quarterly earnings report soon. Investment aficionados everywhere are eagerly awaiting this moment as they speculate on the company’s performance and future direction.
Anticipated Earnings
Market analysts are setting expectations high with a forecasted earnings per share (EPS) of $0.43 for Coterra Energy. Investors are keen to see if the company can surpass this benchmark and what guidance it will provide for the upcoming quarter.
Historical Context
It's vital for investors to consider the history of the company’s earnings releases. Last quarter, Coterra Energy managed to exceed EPS estimates by just $0.01, which interestingly coincided with a 9.26% decline in share price the next day. This highlights the volatility that can accompany earnings announcements.
Recent Earnings Performance
In reviewing past quarters, here’s a summary of Coterra Energy's performance:
| Quarter | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 |
|---|---|---|---|---|
| EPS Estimate | 0.79 | 0.43 | 0.34 | 0.39 |
| EPS Actual | 0.80 | 0.49 | 0.32 | 0.37 |
| Price Change % | -9.0% | -2.0% | -5.0% | -5.0% |
Current Share Performance
As of the end of July, Coterra Energy shares traded at $24.39. In a tumultuous market, it’s encouraging to note that over the past year, its shares have increased by 2.11%. This bullish trend has kept long-term shareholders hopeful as the earnings report approaches.
Market Analysts' Insights
Understanding market sentiment is a critical element of investment strategy. Currently, Coterra Energy holds an "Outperform" rating from analysts, reflecting confidence in its future. The average one-year price target has been noted at $34.22, suggesting a potential upside of 40.3% from the current trading price.
Peer Comparisons
How does Coterra Energy stack up against its key competitors? Here are insights regarding analyst ratings and average price targets for significant peers:
- Devon Energy carries an Outperform rating, with an average price target of $44.55, hinting at an impressive 82.66% upside.
- Expand Energy also has an Outperform consensus, showcasing a staggering price target of $135.09, representing a possible 453.87% increase.
- Antero Resources sits at a Neutral rating, with an average target of $47.67, offering a respectable 95.45% upside potential.
Understanding Peer Metrics
The competitive landscape is essential for contextual analysis. Here’s a brief overview of metrics for Coterra Energy alongside its peers:
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| Coterra Energy | Outperform | 32.87% | $903M | 3.77% |
| Devon Energy | Outperform | 23.80% | $1.19B | 3.40% |
| Expand Energy | Outperform | 632.80% | $1.41B | 5.51% |
| Antero Resources | Neutral | 29.73% | $242.66M | 2.16% |
Coterra ranks first in Revenue Growth and Gross Profit but struggles with a lower Return on Equity compared to its peers. This indicates that while its revenue and profit may be climbing, efficiency in using shareholder equity needs improvement.
Corporate Overview of Coterra Energy
Coterra Energy Inc operates as an independent oil and gas entity, dedicated to the exploration, development, and production of oil and natural gas, including natural gas liquids (NGLs). Its operations leverage high-potential hydrocarbon resource regions within the continental U.S. The company's efforts are primarily focused in resource-rich areas, such as the Permian Basin, the Marcellus Shale, and the Anadarko Basin.
Financial Performance Breakdown
Market Capitalization: The firm’s market cap suggests certain challenges relative to larger market players in the energy sector.
Revenue Growth: Coterra Energy has reported a robust revenue growth rate of 32.87% for recent months, but it still trails behind the average growth rates seen industry-wide.
Net Margin: Impressively, the company boasts a net margin of 27.1%, evidencing solid profitability and effective cost controls.
Return on Equity (ROE): The ROE of 3.77% indicates difficulties in optimizing shareholder returns.
Return on Assets (ROA): With a strong ROA of 2.26%, Coterra demonstrates effective asset utilization.
Debt Management: The company maintains a sensible debt-to-equity ratio of 0.32, further affirming a balanced approach to financial management.
Frequently Asked Questions
1. What is the expected EPS for Coterra Energy?
The anticipated earnings per share for Coterra Energy is $0.43 for the upcoming report.
2. How have past earnings affected Coterra Energy's stock price?
Historically, stock prices saw fluctuations post-earnings announcements, notably with a drop following last quarter's results.
3. What rating do analysts give Coterra Energy?
Coterra Energy holds an "Outperform" rating according to analysts based on their evaluations.
4. Who are Coterra Energy's primary competitors?
Key competitors include Devon Energy, Expand Energy, and Antero Resources, each with varying growth and performance metrics.
5. Where does Coterra Energy operate?
Coterra Energy focuses on hydrocarbon developments mainly in the Permian Basin, Marcellus Shale, and Anadarko Basin.
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