Analysts Have Made A Financial Statement On CNX Resources Corporation's (NYSE:CNX) Full-Year Report
Investors in CNX Resources Corporation (NYSE:CNX) had a good week, as its shares rose 2.6% to close at US$15.00 following the release of its annual results. Statutory results overall were mixed, with revenues coming in 44% lower than the analysts predicted. What's really surprising is that losses of US$2.31 per share were 51% smaller than what was predicted. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Check out our latest analysis for CNX Resources
Taking into account the latest results, the most recent consensus for CNX Resources from eight analysts is for revenues of US$1.81b in 2022 which, if met, would be a huge 139% increase on its sales over the past 12 months. Earnings are expected to improve, with CNX Resources forecast to report a statutory profit of US$1.77 per share. In the lead-up to this report, the analysts had been modelling revenues of US$1.84b and earnings per share (EPS) of US$1.79 in 2022. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
The analysts reconfirmed their price target of US$19.73, showing that the business is executing well and in line with expectations. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on CNX Resources, with the most bullish analyst valuing it at US$27.00 and the most bearish at US$15.00 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The analysts are definitely expecting CNX Resources' growth to accelerate, with the forecast 139% annualised growth to the end of 2022 ranking favourably alongside historical growth of 7.4% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 4.2% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that CNX Resources is expected to grow much faster than its industry.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple CNX Resources analysts - going out to 2023, and you can see them free on our platform here.
It might also be worth considering whether CNX Resources' debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
