Earnings Analysis for CTRA – Last Three Years
Revenue Analysis
Total Revenue: CTRA has experienced fluctuations in total revenue over the last three years, ranging from $1.185 billion in 2023-06-30 to $1.777 billion in 2023-03-31, indicating a period of growth followed by a decrease to $1.433 billion in 2024-03-31.
Operating Revenue: Similarly, operating revenue peaked at $1.614 billion in 2023-03-31 before decreasing to $1.412 billion by 2024-03-31, reflecting trends similar to total revenue.
Gross Profit: Gross profits were highest at $1.041 billion in 2023-03-31, subsequently decreasing to $598 million by 2024-03-31 which might raise concerns regarding cost management or competitive pricing pressures.
Cost Management
Cost of Revenue: Costs of revenue peaked at $871 million in 2023-12-31, aligning with the higher revenue periods but have shown a slight reduction to $835 million by 2024-03-31, which slightly improves the gross margin.
Operating Expense: Operating expenses see oscillating trends, peaking at $162 million in 2023-03-31 and reaching a low of $150 million in 2023-09-30, potentially signaling optimization of operational expenses over time.
Total Expenses: There’s a consistent increase in total expenses from $906 million in 2023-06-30 to $992 million in 2024-03-31, reflecting increased activity or reduced operational efficiency.
Profitability Analysis
EBITDA: EBITDA shows healthy figures, reaching a high of $1.259 billion in 2023-03-31 but has decreased to $889 million by 2024-03-31, suggesting potential operational or market challenges.
Operating Income: Operating income mimics EBITDA trend, peaking at $879 million in 2023-03-31, and declining over the years to $441 million in 2024-03-31.
Pretax Income: Pretax income reached its zenith at $872 million in 2023-03-31 with a decline to $437 million by 2024-03-31, likely due to the compounded effect of reduced operational inefficiencies and market impacts.
Net Income: Lastly, net income achieved a high of $677 million in 2023-03-31 but saw a substantial fall to $352 million by 2024-03-31. This aligns with the downtrend observed in revenue and profitability metrics.
Cash Flow Indicators
Reconciled Depreciation: There’s an increasing trend in reconciled depreciation from $366 million in 2023-03-31 to $429 million by 2024-03-31 indicating rising capital depreciation costs.
Interest Expense: Interest expense varied slightly with a peak of $29 million in 2023-12-31 reducing slightly to $23 million by 2024-03-31, affecting the net finance costs.
Taxation
Tax Rate: The effective tax rate fluctuated, with a notable rate of 26.89% in 2023-12-31 while the rest periods were lower indicating varying tax obligations potentially influenced by operational jurisdictions and tax strategies.
Tax Provision: Tax provision amounts peaked at $195 million in 2023-03-31 then fell to $85 million by 2024-03-31 reflective of pretax income changes.
Tax Effect of Unusual Items: There were fluctuations in the tax effects of unusual items, seen peaking with a positive figure in 2023-09-30 of approximately $1.76 million which might reflect non-recurring tax benefits or costs.
Shareholder Metrics
Diluted and Basic EPS: Both diluted and basic EPS peaked at 0.88 in 2023-03-31, reflecting the highest net income achievement for this period, but then declined to 0.47 by 2024-03-31 alongside net income reductions.
Average Shares: Both diluted and basic average shares showed minimal fluctuations, indicating stable equity dilution across the given periods.
Net Income Available to Common Stockholders: This metric essentially conforms with the net income pattern, reaching a high in 2023-03-31 and declining over subsequent periods.
Conclusion
While CTRA demonstrated significant operational and financial capability in early periods, recent years have shown a decline in key financial metrics, likely due to increased costs, reduced operational efficiency, or market pressures. Focusing on cost optimization, enhancing operational efficiency, and potentially revising pricing or market strategies could be beneficial in reversing the downtrend.