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Cloud Peak (CLD) Q4 Earnings: What's in Store for the Stock?

Cloud Peak Energy Inc.CLD is slated to release fourth-quarter 2016 financial results on Feb 15 after the market closes . Last quarter, this Power River Basin-based coal company reported a positive earnings surprise of 150.0%. Let's see how things are shaping up prior to this announcement.

Factors to Consider

Strong emission regulations like Clean Power Plan, are hurting the prospects of the coal company for this regulation encourages utilities to use lesser coal to produce electricity..

However, due to the higher domestic shipment volume expectations and the positive contribution of the contracted fourth-quarter export sales, Cloud Peak Energy is raising its full-year adjusted EBITDA guidance range to between $90 million and $100 million.

Trump's Presidency is expected to benefit defensive and domestic-oriented coal based utilities immensely. We expect President Trump's view on climate change and his plans to abandon the Paris agreement to support fossil fuel-based companies are likely to help the coal companies survive the ongoing challenges.

Earnings Whispers

Our proven model does not conclusively show that Cloud Peak Energy is likely to beat estimates this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. But that is not the case here, as you will see below.

Cloud Peak Energy Inc Price and EPS Surprise

Cloud Peak Energy Inc Price and EPS Surprise | Cloud Peak Energy Inc Quote

Zacks ESP : Earnings ESP, the difference between the Most Accurate estimate and the Zacks Consensus Estimate is at 0.00%, as both estimates are pegged at - 5 cents. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .

Zacks Rank : Cloud Peak Energy carries a Zacks Rank #3. Though the Zacks Rank #3 increases the possibility of a beat, its 0.00% ESP makes a surprise prediction difficult.

Note that we caution against Sell-rated stocks (#4 or #5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.

Stocks to Consider

At present none of the coal companies have the right mix of factors to come out with an earnings beat this season. However, here are a few players in the Oils-Energy sector that have the right combination of elements to post an earnings beat this quarter.

Northern Oil & Gas NOG is expected to report fourth-quarter 2016 earnings on Mar 1. It has an Earnings ESP of +25.00% and a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank stocks here .

EOG Resources Inc. EOG has an Earnings ESP of +6.67% and a Zacks Rank #3. It is expected to report fourth-quarter earnings on Feb 27.

Concho Resources Inc. CXO has an Earnings ESP of +55.56% and a Zacks Rank #3. It is slated to report fourth-quarter earnings on Feb 21.

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Cloud Peak Energy Inc (CLD): Free Stock Analysis Report

EOG Resources, Inc. (EOG): Free Stock Analysis Report

Concho Resources Inc. (CXO): Free Stock Analysis Report

Northern Oil and Gas, Inc. (NOG): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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