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Although these are still early days, the second-quarter releases are well on the way. Our crucial concern is how the battered and beaten coal sector will perform this quarter. Is there anything to show there is a turnaround under way, which will change its fate in the second half of the year?
Stringent regulatory directives on emission and increasing usage of cheap natural gas and alternate sources of energy have lowered the usage of coal for electricity production. Declining demand along with reducing per ton prices sold is taking a toll on the coal miners.
Two of the best firms in the coal space, Peabody Energy and Arch Coal, buckled under pressure, leading to their bankruptcies.
For the broader S&P group, though the season has begun on a fairly upbeat note, the projections are none too encouraging with earnings expected to decline 5.4% on 0.5% lower revenues. Nine out of the 16 sectors in the Zacks coverage universe are expected to witness an earnings decline. Read more details from our weekly Earnings Preview report .
Coal Doldrums
Will the coal industry survive the relentless pressure from regulatory bodies and competing sources of fuels? In response to lackluster coal market fundamentals, the companies have resorted to stringent measures to improve their financial performance. Miners have taken initiatives to cut costs while engaging in tactful expenditures to ensure coal-mining safety. High-cost coal mines are being shuttered while operations are moved to low-cost regions.
At present, none of the coal stocks in our coverage in the coal industry have the perfect combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2(Buy) or #3 (Hold) to come out with a positive earnings surprise.
Let us focus on some coal companies reporting second-quarter earnings next week.
Coal producer, SunCoke Energy Inc. (SXC - Free Report) is set to report second-quarter 2016 results on Jul 28. The company provides metallurgical and thermal coal for use as a raw material in the blast furnace needed for the steelmaking process. This Zacks Rank #1 stock currently has an Earnings ESP of 0.00%. The Zacks Consensus Estimate for the quarter is pegged at a loss of 2 cents. The company delivered a positive earnings surprise of 25.00% last quarter.
Coal and natural gas producer CONSOL Energy (CNX - Free Report) is expected to report second-quarter 2016 results on Jul 26 before the market opens. This Zacks Rank #2 stock currently has an Earnings ESP of 0.00% (read more: Will CONSOL Beat Earnings Estimates on E&P Focus?).
Coal producer Cloud Peak Energy Inc. is set to report second-quarter 2016 results on Jul 28. This Zacks Rank #2 (Buy) stock currently has an Earnings ESP of 0.00% (read more: What's in Store for Cloud Peak Energy in Q2 Earnings?).
Thermal coal producer & supplier CNX Coal Resources LP (CNXC - Free Report) is scheduled to report second-quarter 2016 results on Jul 25, after the market closes. This Zacks Rank #3 stock currently has an Earnings ESP of 0.00% (read more: CNX Coal : Will the Stock Disappoint in Q2 Earnings?).
Alliance Resource Partners, L.P. (ARLP - Free Report) produces and markets coal primarily to utilities and industrial users in the United States. The partnership is expected to release second-quarter earnings on Jul 26.
The company delivered a 12.2% negative surprise last quarter. Alliance Resource Partners has an Earnings ESP of 0.00% and a Zacks Rank #3. The Zacks Consensus Estimate for the quarter is pegged at 56 cents.
Alliance Holdings GP, L.P. and its subsidiaries produce and market coal primarily to utilities and industrial users in the United States. The partnership is expected to release second-quarter earnings on Jul 26.
The company delivered a 36.59% negative surprise last quarter. Alliance Holdings GP has an Earnings ESP of 0.00% and a Zacks Rank #3. The Zacks Consensus Estimate for the quarter is pegged at 66 cents.
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Coal Stocks Q2 Earnings Preview: CNX, CLD, CNXC & Others
Although these are still early days, the second-quarter releases are well on the way. Our crucial concern is how the battered and beaten coal sector will perform this quarter. Is there anything to show there is a turnaround under way, which will change its fate in the second half of the year?
Stringent regulatory directives on emission and increasing usage of cheap natural gas and alternate sources of energy have lowered the usage of coal for electricity production. Declining demand along with reducing per ton prices sold is taking a toll on the coal miners.
Two of the best firms in the coal space, Peabody Energy and Arch Coal, buckled under pressure, leading to their bankruptcies.
For the broader S&P group, though the season has begun on a fairly upbeat note, the projections are none too encouraging with earnings expected to decline 5.4% on 0.5% lower revenues. Nine out of the 16 sectors in the Zacks coverage universe are expected to witness an earnings decline. Read more details from our weekly Earnings Preview report .
Coal Doldrums
Will the coal industry survive the relentless pressure from regulatory bodies and competing sources of fuels? In response to lackluster coal market fundamentals, the companies have resorted to stringent measures to improve their financial performance. Miners have taken initiatives to cut costs while engaging in tactful expenditures to ensure coal-mining safety. High-cost coal mines are being shuttered while operations are moved to low-cost regions.
At present, none of the coal stocks in our coverage in the coal industry have the perfect combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2(Buy) or #3 (Hold) to come out with a positive earnings surprise.
Let us focus on some coal companies reporting second-quarter earnings next week.
Coal producer, SunCoke Energy Inc. (SXC - Free Report) is set to report second-quarter 2016 results on Jul 28. The company provides metallurgical and thermal coal for use as a raw material in the blast furnace needed for the steelmaking process. This Zacks Rank #1 stock currently has an Earnings ESP of 0.00%. The Zacks Consensus Estimate for the quarter is pegged at a loss of 2 cents. The company delivered a positive earnings surprise of 25.00% last quarter.
SUNCOKE ENERGY Price and EPS Surprise
SUNCOKE ENERGY Price and EPS Surprise | SUNCOKE ENERGY Quote
Coal and natural gas producer CONSOL Energy (CNX - Free Report) is expected to report second-quarter 2016 results on Jul 26 before the market opens. This Zacks Rank #2 stock currently has an Earnings ESP of 0.00% (read more: Will CONSOL Beat Earnings Estimates on E&P Focus?).
CONSOL ENERGY Price and EPS Surprise
CONSOL ENERGY Price and EPS Surprise | CONSOL ENERGY Quote
Coal producer Cloud Peak Energy Inc. is set to report second-quarter 2016 results on Jul 28. This Zacks Rank #2 (Buy) stock currently has an Earnings ESP of 0.00% (read more: What's in Store for Cloud Peak Energy in Q2 Earnings?).
CLOUD PEAK EGY Price and EPS Surprise
CLOUD PEAK EGY Price and EPS Surprise | CLOUD PEAK EGY Quote
Thermal coal producer & supplier CNX Coal Resources LP (CNXC - Free Report) is scheduled to report second-quarter 2016 results on Jul 25, after the market closes. This Zacks Rank #3 stock currently has an Earnings ESP of 0.00% (read more: CNX Coal : Will the Stock Disappoint in Q2 Earnings?).
CNX COAL RESRCS Price and EPS Surprise
CNX COAL RESRCS Price and EPS Surprise | CNX COAL RESRCS Quote
Alliance Resource Partners, L.P. (ARLP - Free Report) produces and markets coal primarily to utilities and industrial users in the United States. The partnership is expected to release second-quarter earnings on Jul 26.
The company delivered a 12.2% negative surprise last quarter. Alliance Resource Partners has an Earnings ESP of 0.00% and a Zacks Rank #3. The Zacks Consensus Estimate for the quarter is pegged at 56 cents.
ALLIANCE RES Price and EPS Surprise
ALLIANCE RES Price and EPS Surprise | ALLIANCE RES Quote
Alliance Holdings GP, L.P. and its subsidiaries produce and market coal primarily to utilities and industrial users in the United States. The partnership is expected to release second-quarter earnings on Jul 26.
The company delivered a 36.59% negative surprise last quarter. Alliance Holdings GP has an Earnings ESP of 0.00% and a Zacks Rank #3. The Zacks Consensus Estimate for the quarter is pegged at 66 cents.
ALLIANCE HLDGS Price and EPS Surprise
ALLIANCE HLDGS Price and EPS Surprise | ALLIANCE HLDGS Quote
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