Will CNR's Q1 2025 EPS beat forecasts?
4/7/2025 02:18pm
**Core Natural Resources Inc (CNR) is likely to face challenges in exceeding EPS forecasts for Q1 2025.** Here's why:
1. **Earnings Projection**: The estimated EPS for CNR in Q1 2025 is $1.15. This is a key benchmark for evaluating the company's performance against market expectations.
2. **Recent Performance and Challenges**:
- CNR's Q4 2024 earnings showed a net income of $30.8 million, which is a significant drop from the previous year's $157.1 million. This decline suggests that CNR may be facing operational disruptions and market headwinds, which could impact earnings in the subsequent quarter.
- The company's full-year 2024 net income was $286 million, with an adjusted EBITDA of $655 million and free cash flow of $301 million. While these figures are substantial, they do not necessarily translate to a strong EPS performance in Q1 2025.
3. **Market Conditions and Strategic Moves**: CNR has announced a $1 billion share repurchase plan and increased its revolving credit facility to $600 million with a reduced interest rate. These strategic moves indicate a focus on shareholder value and financial stability, but they may not directly impact EPS figures.
4. **Analyst Expectations**: Analysts anticipate CNR to post earnings of $1.63 per share and revenue of $493.50 million for Q1 2025. This compares to the forecasted EPS of $1.15 for the same period, suggesting that analysts are cautious in their expectations for CNR's earnings in Q1 2025.
In conclusion, while CNR has made strategic moves to enhance shareholder value and stabilize its financial position, the current earnings projections for Q1 2025 indicate that the company may not exceed market expectations in terms of EPS. The decline in net income from the previous year and the cautious analyst expectations support this assessment.