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CONSOL Energy's (CNX) Q2 Loss Wider than Expected

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Canonsburg, PA based CONSOL Energy Inc., (CNX - Free Report) is a multi-fuel energy producer and an energy services provider, primarily catering to the U.S. power producers. The company principally operates two business lines: Coal and Natural Gas.

CONSOL Energy’s increasing focus on natural gas, along with its remaining coal operation, will help it to survive difficult industry fundamentals even when some of its coal-focused peers are going bankrupt. CONSOL is also assiduously lowering its costs and expects more cost saves in the future

Last year, CONSOL Energy formed a coal MLP, CNX Coal Resources (CNXC - Free Report) to concentrate more on E&P activities. These modifications will benefit the company in the long term with separate management teams assigned to run each of the businesses.

CONSOL Energy’s focus on expanding its gas operations is yielding positive results. The company targets a 15% year over year increase in gas production in 2016.

Estimate Trend & Surprise History

Investors should note that the second quarter Zacks Consensus Estimate for loss of 17 cents per share has widened by 41.7% over the last 90 days.

Coming to the earnings surprise, CONSOL Energy has lagged the Zacks Consensus Estimate in three of the last four quarters, resulting in a negative average surprise of 1,299.4%.

Zacks Rank: Currently, CONSOL Energy has a Zacks Rank#2 (Buy) but that could change following its second quarter 2016 earnings report which has just released. We have highlighted some of the key details from the just-released announcement below:

Earnings: Adjusted loss per share came in at 21 cents, wider than the Zacks Consensus Estimate of a loss of 17 cents.
 
Revenue: Revenues of $285.8 million lagging the Zacks Consensus Estimate of $581 million by 50.8% and year ago revenue of $545.6 million by 47.6%.

Key Stats: CONSOL Energy registered a 32% year-over-year increase in second quarter 2016 gas production volumes to 99.3 Bcfe.

Stock Price: It would be interesting to see how the market reacts to the wider than expected second quarter loss during the trading session today.

Check back later for our full write up on this CNX earnings report later!

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