Valued at $21.4 billion by market cap, Coterra Energy Inc. (CTRA) operates as a premier, diversified energy company. The Houston-based energy major engages in the development, exploration, and production of oil, natural gas, and natural gas liquids in the U.S. The company is expected to announce its fourth-quarter results on Thursday, Feb. 27.
Ahead of the event, analysts expect Coterra to report a non-GAAP profit of $0.41 per share, down 16.3% from $0.49 per share reported in the year-ago quarter. While the company has surpassed Wall Street’s earnings projections once over the past four quarters, it has missed the estimates on three other occasions. Its adjusted EPS for the last reported quarter dropped 36.2% year-over-year to $0.30, missing the consensus estimates by 14.3%.
For the full fiscal 2024, Coterra is expected to report an adjusted EPS of $1.54, down 29.7% from $2.19 in fiscal 2023. While in fiscal 2025, its earnings are expected to rebound 104.6% year-over-year to $3.15 per share.
CTRA stock has gained nearly 16% over the past 52 weeks, outpacing the Energy Select Sector SPDR Fund’s (XLE) 11.6% returns while lagging behind the S&P 500 Index’s ($SPX) 25.3% surge during the same time frame.
Coterra Energy’s stock prices plummeted 5.1% in the trading session after the release of its mixed Q3 results on Oct. 31. While the company observed a marginal growth in revenues compared to the year-ago quarter to nearly $1.4 billion which surpassed analysts’ estimates by 2.7%, its earnings missed Street’s expectations by a significant margin. Furthermore, Coterra lowered its full-year non-GAAP capital expenditure guidance which unsettled investor confidence.
On a positive note, the company remains confident in its positioning and raised its full-year oil, natural gas, and BOE production guidance by notable margins.
Furthermore, analysts remain bullish on CTRA’s long-term prospects. It has an overall “Strong Buy” rating. Out of the 24 analysts covering the stock, 19 recommend “Strong Buy,” one advises “Moderate Buy,” and four suggest a “Hold” rating. Its mean price target of $34 represents a 17.2% premium to current price levels.
