Industry Analysts Just Made A Captivating Upgrade To Their CNX Resources Corporation (NYSE:CNX) Revenue Forecasts

Celebrations may be in order for CNX Resources Corporation (NYSE:CNX) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The revenue forecast for this year has experienced a facelift, with analysts now much more optimistic on its sales pipeline. The market may be pricing in some blue sky too, with the share price gaining 11% to US$17.95 in the last 7 days. We'll be curious to see if these new estimates convince the market to lift the stock price higher still.

Following the latest upgrade, the current consensus, from the seven analysts covering CNX Resources, is for revenues of US$817m in 2022, which would reflect a disturbing 70% reduction in CNX Resources' sales over the past 12 months. The loss per share is anticipated to greatly reduce in the near future, narrowing 71% to US$2.22. Yet before this consensus update, the analysts had been forecasting revenues of US$741m and losses of US$2.38 per share in 2022. So there's been quite a change-up of views after the recent consensus updates, with the analysts making a sizeable increase to their revenue forecasts while also reducing the estimated loss as the business grows towards breakeven.

Check out our latest analysis for CNX Resources

There was no major change to the consensus price target of US$28.30, perhaps suggesting that the analysts remain concerned about ongoing losses despite the improved earnings and revenue outlook. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on CNX Resources, with the most bullish analyst valuing it at US$46.00 and the most bearish at US$21.00 per share. This is a fairly broad spread of estimates, suggesting that the analysts are forecasting a wide range of possible outcomes for the business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 80% by the end of 2022. This indicates a significant reduction from annual growth of 16% over the last five years. Yet aggregate analyst estimates for other companies in the industry suggest that industry revenues are forecast to decline 4.0% per year. The forecasts do look bearish for CNX Resources, since they're expecting it to shrink faster than the industry.

The Bottom Line

The highlight for us was that the consensus reduced its estimated losses this year, perhaps suggesting CNX Resources is moving incrementally towards profitability. Notably, analysts also upgraded their revenue estimates, with sales performing well although CNX Resources' revenue growth is expected to trail that of the wider market. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at CNX Resources.

Better yet, CNX Resources is expected to break-even soon - within the next few years - according to analyst forecasts, which would be a momentous event for shareholders. For more information, you can click through to our free platform to learn more about these forecasts.

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