Continental Resources (NYSE:CLR) Q3 2020 Earnings Prep

in EARNINGS/INVESTING IDEAS by

Continental Resources, Inc. (NYSE:CLR) is scheduled to report Q3 earnings results after markets close for trading on November 5, 2020.

The company is expected to report earnings of -$0.25/share on revenue of $626.2 million. The consensus earnings per share (EPS) of -$0.25/share is based on a poll of 26 analysts and represents a decline in eps of −146.0% over the same quarter last year, when the company reported earnings of $0.54/share.

The revenue forecast of $626.2 million based on a poll of 11 analysts implies a year-over-year (YoY) decline in revenue of −43.3%. Last year the company reported $1.104 billion in revenue for the quarter.

Expected to report EPS of -$0.25/share for Q3, 2020
Metric Expected Prior Year YoY Change
Revenue $626.17 $1,104.20 −43.3%
EPS -$0.25 $0.54 −146.0%

Earnings Call Trends

Historically, management has exceeded analyst expectations 4 out of the last 8 tracked quarters, and missed expectations 4 quarters.

What are your expectations from Continental Resources, Inc. for earnings this quarter? Let us know in the comments!

Analyst Expected vs. Reported EPS
Quarter Expected Reported Surprise Result
Q2, 2020 -$0.62 -$0.71 -15.2% Missed
Q1, 2020 -$0.05 -$0.08 -53.8% Missed
Q4, 2019 $0.52 $0.55 5.6% Beat
Q3, 2019 $0.44 $0.54 22.2% Beat
Q2, 2019 $0.61 $0.59 −2.9% Missed
Q1, 2019 $0.49 $0.58 18.9% Beat
Q4, 2018 $0.59 $0.54 −9.2% Missed
Q3, 2018 $0.82 $0.90 9.1% Beat

In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report. After the last earnings report for the period ending June 30, 2020, the stock price reacted by falling −4.0%.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
August 3, 2020 $17.29 $16.59 −4.0% Decline
May 11, 2020 $15.09 $14.44 −4.3% Decline
February 26, 2020 $21.90 $17.46 −20.3% Decline
October 30, 2019 $29.35 $29.47 0.4% Increase

The other question to consider is one of earnings manipulation. There is a lot of pressure on management each quarter to deliver on earnings expectations. The Beneish M-Score is a statistical model that provides some insight into whether the company might be manipulating earnings. With a Beneish M-Score of −4.01, the model suggests that the company is not likely to be an earnings manipulator. A value of −4.01 implies a 0.0% chance of earnings manipulation.

Fundamentals And Technical Analysis

Continental Resources, Inc. is currently trading at $12.19/share, down −5.7% for the day. The company is trading at approximately 33.9% of its 52-week high of $36.20/share. The company’s stock price is down −26.6% since the last earnings report and down −6.9% over the previous week. The company’s 14 Day Relative Price Index (RSI) of 47.01 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.


NYSE:CLR Stock Price Chart
Source: Finbox

The current share price implies a price-to-earnings (P/E) multiple of −60.88 and a forward P/E multiple of −11.52.

Continental Resources, Inc.’s current share price also implies a price-to-book (P/B) multiple of 0.72. The following table summarizes some other key fundamental ratios:

Data as of October 28, 2020
Metric Value
Last Reported Fiscal Period Key FY2020.Q2
Period End Date June 30, 2020
Stock Price (Current) $12.19
P/E Ratio −60.9x
P/E Ratio (Fwd) −11.5x
PEG Ratio 0.6
Total Debt / Total Capital 53.4%
Levered Free Cash Flow -$68.919 million
EV / EBITDA 4.8x

Finbox

Continental Resources, Inc. is a mid-cap stock with a market capitalization of $4.654 billion and a total enterprise value of $10.777 billion. The company operates in the Energy sector and the Oil, Gas & Consumable Fuels industry.

Continental Resources, Inc. explores for, develops, and produces crude oil and natural gas properties primarily in the north, south, and east regions of the United States. The company sells its crude oil and natural gas production to energy marketing companies, crude oil refining companies, and natural gas gathering and processing companies. As of December 31, 2019, its proved reserves were 1,619 million barrels of crude oil equivalent (MMBoe) with estimated proved developed reserves of 707 MMBoe. Continental Resources, Inc. was founded in 1967 and is based in Oklahoma City, Oklahoma.

Expertise: financial technology, analyzing market trends. Brian is a founder at finbox.io, where he’s focused on building tools that make it faster and easier for investors to research stock fundamentals. Brian’s background is in physics & computer science and previously worked as a software engineer at GE Healthcare. He enjoys applying his expertise in technology to help find market trends that impact investors. Brian can be reached at brian@finbox.io or at +1 (516) 778-6257.

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