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Today is shaping up negative for CNX Resources Corporation (NYSE:CNX) shareholders, with the analysts delivering a substantial negative revision to this year's forecasts. Revenue estimates were cut sharply as analysts signalled a weaker outlook - perhaps a sign that investors should temper their expectations as well.
Following the downgrade, the latest consensus from CNX Resources' eight analysts is for revenues of US$1.5b in 2021, which would reflect a reasonable 5.5% improvement in sales compared to the last 12 months. Before the latest update, the analysts were foreseeing US$1.7b of revenue in 2021. The consensus view seems to have become more pessimistic on CNX Resources, noting the substantial drop in revenue estimates in this update.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the CNX Resources' past performance and to peers in the same industry. The analysts are definitely expecting CNX Resources' growth to accelerate, with the forecast 11% annualised growth to the end of 2021 ranking favourably alongside historical growth of 2.9% 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 2.2% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect CNX Resources to grow faster than the wider industry.
The Bottom Line
The clear low-light was that analysts slashing their revenue forecasts for CNX Resources this year. They're also forecasting more rapid revenue growth than the wider market. Overall, given the drastic downgrade to this year's forecasts, we'd be feeling a little more wary of CNX Resources going forwards.
But wait - there's more! At least one of CNX Resources' eight analysts has provided estimates out to 2023, which can be seen for free on our platform here.
Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies that insiders are buying.
This article by Simply Wall St is general in nature. 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.
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