The Consensus EPS Estimates For CNX Resources Corporation (NYSE:CNX) Just Fell A Lot

One thing we could say about the analysts on CNX Resources Corporation (NYSE:CNX) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting analysts have soured majorly on the business.

Following the downgrade, the current consensus from CNX Resources' eight analysts is for revenues of US$1.5b in 2021 which - if met - would reflect a satisfactory 5.5% increase on its sales over the past 12 months. Losses are predicted to fall substantially, shrinking 57% to US$0.53. Prior to this update, the analysts had been forecasting revenues of US$1.7b and earnings per share (EPS) of US$1.27 in 2021. There looks to have been a major change in sentiment regarding CNX Resources' prospects, with a substantial drop in revenues and the analysts now forecasting a loss instead of a profit.

View our latest analysis for CNX Resources

There was no major change to the consensus price target of US$16.91, signalling that the business is performing roughly in line with expectations, despite lower earnings per share forecasts. 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. Currently, the most bullish analyst values CNX Resources at US$21.00 per share, while the most bearish prices it at US$14.00. This shows there is still some diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

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 11% annualised revenue growth to the end of 2021 noticeably faster than its historical growth of 2.9% p.a. 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 1.6% 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 biggest low-light for us was that the forecasts for CNX Resources dropped from profits to a loss this year. Unfortunately, analysts also downgraded their revenue estimates, although our data indicates revenues are expected to perform better than the wider market. The lack of change in the price target is puzzling in light of the downgrade but, with a serious decline expected this year, we wouldn't be surprised if investors were a bit wary of CNX Resources.

Still, the long-term prospects of the business are much more relevant than next year's earnings. 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.

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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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