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Can CNX Resources Beat Its 4Q17 Earnings Estimates?

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Odds of beating earnings

In the last four quarters, CNX Resources (CNX) beat the consensus EPS (earnings per share) estimate in 1Q17 and 2Q17. It thus beat the estimate 50% of the time.

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CNX stock reaction to 3Q17 earnings

CNX Resources announced its 3Q17 earnings on October 31, 2017, before the market opened. It reported an adjusted loss of $0.15 per share, which was $0.17 worse than Wall Street analysts’ consensus for a profit of $0.02 per share. CNX’s 3Q17 earnings were almost flat compared with the 3Q16 loss of $0.15 per share. Even when compared sequentially, CNX’s 3Q17 earnings were $0.32 lower than its 2Q17 profit of $0.17 per share. Following the earnings release, better-than-expected earnings saw CNX Resources stock fall from $13.80 to $13.45 in one session.

Since its 3Q17 earnings, CNX Resources has underperformed the SPDR S&P 500 ETF (SPY) and the SPDR Dow Jones Industrial Average ETF (DIA). CNX has been almost flat, whereas SPY and DIA have risen 11% and 14%, respectively.

Same quarter, a year ago

CNX Resources announced its 4Q16 earnings on January 31, 2017, before the market opened. In 4Q16, excluding one-time items, CNX missed the consensus EPS estimate by $0.01. Following the earnings release, worse-than-expected earnings saw CNX Resources stock fall 8% in three sessions.

Other oil and gas producers

In the last four quarters, upstream players ConocoPhillips (COP), Devon Energy (DVN), and Murphy Oil (MUR) have beaten their earnings expectations 75%, 100%, and 75% of the time, respectively.

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