It's been a good week for CNX Resources Corporation (NYSE:CNX) shareholders, because the company has just released its latest yearly results, and the shares gained 2.6% to US$15.00. 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. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Taking into account the latest results, the current consensus from CNX Resources' eight analysts is for revenues of US$1.81b in 2022, which would reflect 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. Before this earnings report, the analysts had been forecasting 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.
There were no changes to revenue or earnings estimates or the price target of US$19.73, suggesting that the company has met expectations in its recent result. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic CNX Resources analyst has a price target of US$27.00 per share, while the most pessimistic values it at US$15.00. 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.
Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that CNX Resources' rate of growth is expected to accelerate meaningfully, with the forecast 139% annualised revenue growth to the end of 2022 noticeably faster than its historical growth of 7.4% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 4.2% annually. 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 most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at US$19.73, with the latest estimates not enough to have an impact on their price targets.
With that in mind, we wouldn't be too quick to come to a conclusion on CNX Resources. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for CNX Resources going out to 2023, and you can see them free on our platform here..
You can also view our analysis of CNX Resources' balance sheet, and whether we think CNX Resources is carrying too much debt, for free on our platform here.
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