The Oklahoma City-based crude oil and natural gas production company operates primarily in the Northern, Southern and Eastern regions of the U.S. Jefferies maintained its "underperform" rating on the stock.
Oil production will likely fall in the fourth quarter, the firm said in a note on the E&P sector.
"Northeast gas production will likely see a bit of a bump on normal November de-botttlenecks," Jefferies said. "But we see slower overall northeast growth in 2016 on reduced completions and only small gains in basin evacuation capacity."
Jefferies widened its 2015 earnings expectations on Continental Resources stock to a loss of 26 cents per share compared to its previous expectations of a loss of 24 cents per share.
Shares of Continental Resources closed up 0.71% to $34.11 on Thursday.
Separately, TheStreet Ratings team rates CONTINENTAL RESOURCES INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
We rate CONTINENTAL RESOURCES INC (CLR) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. Among the primary strengths of the company is its expanding profit margins over time. At the same time, however, we also find weaknesses including deteriorating net income, generally higher debt management risk and disappointing return on equity.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The gross profit margin for CONTINENTAL RESOURCES INC is currently very high, coming in at 79.23%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 0.05% trails the industry average.
- Despite the weak revenue results, CLR has outperformed against the industry average of 34.5%. Since the same quarter one year prior, revenues fell by 10.1%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- CONTINENTAL RESOURCES INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, CONTINENTAL RESOURCES INC increased its bottom line by earning $2.64 versus $2.07 in the prior year. For the next year, the market is expecting a contraction of 106.4% in earnings (-$0.17 versus $2.64).
- Net operating cash flow has decreased to $394.62 million or 46.80% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
- Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 33.64%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 100.00% compared to the year-earlier quarter. Although its share price is down sharply from a year ago, do not assume that it can now be tagged as cheap and attractive. The reality is that, based on its current price in relation to its earnings, CLR is still more expensive than most of the other companies in its industry.
- You can view the full analysis from the report here: CLR