Back to top

Analyst Blog

We expect diversified fuel producer CONSOL Energy Inc. (CNX - Analyst Report) 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 earnings announcement.  

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 Earnings?

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 coal demand.

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 (BTU - Analyst Report) 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 peers:

Alpha Natural Resources, Inc. (ANR - Snapshot Report) has earnings ESP of +1.67% and carries a Zacks Rank #3 (Hold).

Suncoke Energy Partners, L.P. (SXCP - Snapshot Report) has earnings ESP of +6.82% and carries a Zacks Rank #2 (Buy).

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
UNITED THER… UTHR 117.83 +28.51%
TRIQUINT SE… TQNT 20.67 +6.52%
RF MICRO DE… RFMD 12.47 +6.04%
VASCO DATA… VDSI 14.77 +4.68%
BANCO DO BR… BDORY 15.53 +3.95%