CONSOL Energy Inc.
) will release its fourth quarter 2013 financial results before
the market open on Jan 31, 2014. In the prior quarter, this multi
fuel producer reported a negative surprise of 900.0%. CONSOL
Energy currently has a Zacks Rank #3 (Hold). Let's see how things
are shaping up at the company prior to this announcement.
Factors to Consider This Quarter
CONSOL Energy is currently working towards its long-term strategy
of focusing more on natural gas assets. In this quarter, the
company completed the sale of its Consolidation Coal Company
subsidiary to a unit of Murray Energy Corporation for $3.5
billion. The company expects to record a pre-tax gain of $1.3
billion in the quarter for this transaction.
In December, the company acquired gas drilling rights for 90,000
acres from Dominion Transmission, a unit of
). The acquired acreage is adjacent to the company's existing
The initiatives taken are not likely to show an immediate impact
but will definitely help CONSOL to achieve its 2014 natural gas
production guidance of 215-235 billion cubic feet equivalents
(Bcfe), which is 30% higher than projected 2013 levels.
Our proven model does not conclusively show that CONSOL Energy is
likely to beat earnings this quarter. That is because a stock
needs to have both a positive
(Expected Surprise Prediction) and a Zacks Rank of #1, 2 or 3 for
this to happen. This is not the case here.
Negative Zacks ESP
: This is because the Most Accurate estimate stands at 6 cents
while the Zacks Consensus Estimate is higher at 8 cents,
resulting in -25.00% ESP.
Zacks Rank #3 (Hold):
CONSOL Energy's Zacks Rank #3 complicates the forecasting power
of ESP making surprise prediction difficult. We caution investors
against the stock going into the earnings announcement, as a
negative Zacks ESP lowers the possibility of an earnings
Stocks to Consider
Companies in the broader sector you may want to consider on the
basis of our model which shows that they have the right
combination of elements to post an earnings beat this quarter are
Denison Mines Corp.
) has earnings ESP of +50.00% and carries a Zacks Rank #2
Walter Energy, Inc.
) has earnings ESP of +3.85% and carries a Zacks Rank #3
CONSOL ENERGY (CNX): Free Stock Analysis
DOMINION RES VA (D): Free Stock Analysis
DENISON MINES (DNN): Free Stock Analysis
WALTER ENERGY (WLT): Free Stock Analysis
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