) will release its first quarter 2013 financial results on Apr
25, 2013. In the prior quarter, this coal producer reported a
positive earnings surprise of 95.45%. Let's see how things are
shaping up at CONSOL Energy prior to this announcement.
Why a Likely Positive Surprise?
Our proven model indicates that CONSOL Energy is likely to beat
earnings because it has the right combination of two key
Positive Zacks ESP
: Expected Surprise Prediction or ESP, which represents the
difference between the Most Accurate estimate and the Zacks
Consensus Estimate, is at +10.53%. This is a leading indicator of
a likely positive earnings surprise for the shares.
Zacks Rank #3 (Hold)
: The stocks with Zacks Ranks of #1, #2 and #3 have a
significantly higher chance of beating earnings. The Sell-rated
stocks (#4 and #5) should be avoided going into an earnings
The combination of CONSOL Energy's Zacks Rank #3 (Hold) and
+10.53% ESP makes us confident of a positive earnings beat on Apr
What is Driving Better-than-Expected Earnings?
CONSOL's results in the first quarter are expected to be driven
by favorable weather in the U.S. and higher international demand.
Increasing sales in the to-be-reported quarter will drive the
bottom line at CONSOL Energy.
CONSOL Energy had to draw from its reserves to meet the increase
in demand for coal in domestic as well as international markets.
As a consequence, the company's total coal inventory dropped to
the lowest level in 15 years. CONSOL's well maintained mines rose
to the occasion, surpassing the production guidance set
Another coal operator
Peabody Energy Corporation
) reported first quarter 2013 loss of 5 cents per share,much
narrower than the Zacks Consensus Estimate of a loss of 14 cents.
The better-than-expected performance was primarily due to its
cost containment initiatives.
Other Stocks to Consider
Other companies related to the coal industry worth considering on
the basis of our model, which shows that they have the right
combination of elements to post an earnings beat this quarter,
AMER ELEC PWR (AEP): Free Stock Analysis
PEABODY ENERGY (BTU): Free Stock Analysis
CONSOL ENERGY (CNX): Free Stock Analysis
WALTER ENERGY (WLT): Free Stock Analysis
To read this article on Zacks.com click here.
Walter Energy, Inc.
) has earnings ESP of +1.16% and carries a Zacks Rank #3
American Electric Power Company Inc
) has earnings ESP of +2.47% and carries a Zacks Rank #2