We expect diversified fuel producer
CONSOL Energy Inc.
) to beat expectations when it reports second quarter 2013
results before the market bell on Jul 25, 2013.
Why a Likely Positive Surprise?
Our proven model shows that CONSOL is likely to beat earnings
because it has the right combination of two key ingredients. That
is because a stock needs to have both a positive earnings
Expected Surprise Prediction (ESP) (Read:
Zacks Earnings ESP: A Better Method
) and a Zacks Rank #1, 2 or 3 for this to happen.
Positive Zacks ESP
: ESP, which represents the difference between the Most Accurate
estimate and the Zacks Consensus Estimate, is at +16.67%. This is
a meaningful and leading indicator of a likely positive earnings
surprise for the shares.
Zacks #3 Rank (Hold)
: Note that 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 never be considered going into an
The combination of CONSOL's Zacks Rank #3 (Hold) and +16.67% ESP
makes us confident of a positive earnings beat on Jul 25th.
What is Driving the Better-Than-Expected
CONSOL generates nearly 90% of its revenues from coal related
operations. Though coal production in the second quarter declined
5.6% year over year to 13.8 million tons, a 4.9% year-over-year
decline in total inventory pointed towards a positive movement in
CONSOL Energy's Gas division produced 38.6 billion cubic feet
equivalent (Bcfe) in the second quarter, up 3% from 37.3 Bcfe
produced in the year-ago quarter.
Peabody Energy Corporation
) reported second quarter 2013 earnings of 33 cents per share,
trumping the Zacks Consensus Estimate of a loss of 5 cents.
Other Stocks to Consider
CONSOL is not the only firm looking up this earnings season.
We also see likely earnings beats coming from these two industry
Alpha Natural Resources, Inc.
) has earnings ESP of +1.67% and carries a Zacks Rank #3 (Hold).
ALPHA NATRL RES (ANR): Free Stock Analysis
PEABODY ENERGY (BTU): Free Stock Analysis
CONSOL ENERGY (CNX): Free Stock Analysis
SUNCOKE ENERGY (SXCP): Free Stock Analysis
To read this article on Zacks.com click here.
Suncoke Energy Partners, L.P.
) has earnings ESP of +6.82% and carries a Zacks Rank #2