In its first-quarter financial disclosure, Core & Main (CNR, Financial) reported revenues reaching $1.02 billion, surpassing the anticipated $980.15 million. The company's leadership highlighted the significant strides made since the merger's completion on January 14. Key initiatives include the implementation of a robust capital return program and the execution of strategies that not only aim to realize expected synergies but also enhance them by an additional 10 percent. Moreover, Core & Main has effectively strengthened the synergy between its primary business segments, which focus on global metallurgical and high calorific value thermal coals.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 3 analysts, the average target price for Core Natural Resources Inc (CNR, Financial) is $139.00 with a high estimate of $142.00 and a low estimate of $135.00. The average target implies an upside of 84.69% from the current price of $75.26. More detailed estimate data can be found on the Core Natural Resources Inc (CNR) Forecast page.
Based on the consensus recommendation from 3 brokerage firms, Core Natural Resources Inc's (CNR, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Core Natural Resources Inc (CNR, Financial) in one year is $136.01, suggesting a upside of 80.72% from the current price of $75.26. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Core Natural Resources Inc (CNR) Summary page.
CNR Key Business Developments
Release Date: February 20, 2025
- Net Income: $286 million or $9.61 per diluted share for the full year 2024.
- Adjusted EBITDA: $655 million for the full year 2024.
- Free Cash Flow: $301 million for the full year 2024.
- Share Repurchase Authorization: $1 billion authorized for share repurchases.
- Synergy Value Creation: Over $40 million in synergy-driven value creation expected.
- Revolving Credit Facility: Increased to $600 million with a reduced interest rate by 75 basis points.
- Cash and Cash Equivalents: $590 million at the close of the merger.
- High C.V. Thermal Segment Sales Guidance: 29 million to 31 million tons for 2025.
- Metallurgical Segment Sales Guidance: 7.5 million to 8 million tons for 2025.
- PRB Segment Contracted Tons: 37 million tons at an average revenue of $14.78 per ton.
- SG&A Expenses Guidance: $110 million to $125 million for 2025.
- Capital Expenditures Guidance: $300 million to $330 million for 2025.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Core Natural Resources Inc (CNR, Financial) has successfully integrated its operations post-merger, creating a cohesive and high-performing unit.
- The company has announced a robust capital return framework, including a $1 billion share repurchase authorization.
- CNR has made significant progress in capturing synergies from the merger, with strategies expected to yield over $40 million in value creation.
- The company has resumed development work at Leer South mine earlier than anticipated, demonstrating effective crisis management.
- CNR's diverse product portfolio and strategic asset base position it well to capitalize on global coal market dynamics.
Negative Points
- Current pricing for global metallurgical and high calorific value thermal coals is soft, impacting revenue potential.
- The Leer South mine experienced a combustion event, causing operational disruptions and impacting cash flow.
- The company faces challenges from Chinese tariffs on U.S. coal imports, affecting market dynamics.
- CNR's financial results were impacted by one-time items, including pre-tax expenses related to pension plan litigation.
- The company anticipates a challenging year in 2025 due to weak commodity prices and the recent operational issues at Leer South.
