Coterra Energy's Quarterly Earnings Preview: What You Need to Know

With a market cap of $17.9 billion, Coterra Energy Inc. (CTRA) operates in the oil and gas industry and focuses on the development, exploration, and production of natural gas, oil, and natural gas liquids in the U.S. With key assets in the Marcellus Shale, Permian Basin, and Anadarko Basin, it serves a diverse range of energy markets. The Houston, Texas-based company is expected to announce its fiscal Q3 earnings results after the market closes on Thursday, Oct. 31.

Ahead of this event, analysts expect CTRA to report a profit of $0.37 per share, down 21.3% from $0.47 per share in the previous year's quarter. The company has surpassed Wall Street's bottom-line estimates in two of the past four quarters while missing on two other occasions. In the most recent quarter, the company missed the consensus EPS estimate by a margin of 12.5%.

For fiscal 2024, analysts expect CTRA to report EPS of $1.70, down 22.4% from $2.19 in fiscal 2023. However, EPS is expected to rebound in fiscal 2025, with an estimated 40.6% year-over-year growth to $2.39.

CTRA stock declined 20.3% over the past 52 weeks, lagging behind both the S&P 500 Index's ($SPX) 35.7% rise and the Energy Select Sector SPDR Fund's (XLE) 1.9% dip over the same period.

Coterra Energy's shares dropped 5.1% following its Q2 earnings release on Aug. 1, due to weaker-than-expected adjusted earnings of $0.37 per share. The decline was largely due to lower natural gas prices, which dropped to $1.26 per mcf from $1.65 per mcf a year earlier, with prices in the Permian Basin even falling below zero. Despite a slight increase in total production, the higher operating expenses also weighed on overall profitability.

Analysts' consensus rating on Coterra Energy stock is bullish, with a "Strong Buy" rating overall. Out of 23 analysts covering the stock, opinions include 18 "Strong Buys," one "Moderate Buy," and four "Holds." The average analyst price target for CTRA is $30.92, suggesting a modest potential upside of 30.2% from current levels. 

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On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.