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Alliance Resource (ARLP) Q3 Earnings: Is a Beat in Store?

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Alliance Resource Partners, L.P. (ARLP - Free Report) is expected to release third-quarter 2018 results on Oct 29, before market opens. The coal company delivered a positive earnings surprise of 1.59% in the last reported quarter.
 
What Our Quantitative Model Predicts

Our proven model shows that Alliance Resource is likely to beat estimates in the upcoming quarterly results. A stock needs to have a positive Earnings ESP (which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate) and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to surpass estimates. You can see the complete list of today’s Zacks #1 Rank stocks here.

Earnings ESP: Earnings ESP is pegged at +0.91%.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Alliance Resource carries a Zacks Rank #1. The combination of a favorable Zacks Rank and a positive Earnings ESP makes us reasonably confident of a positive earnings surprise.

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

Factors at Play

Alliance Resource is expected to benefit from President Trump’s decision to withdraw the United States from the Paris Climate Agreement. The coal industry is gradually returning to the normal state, which is propelling domestic demand. The partnership performed well in the first half of 2018 and we expect to witness the trend to continue in third-quarter results.

Alliance Resource has raised revenue guidance for 2018 and anticipates 1.0% higher per ton coal sales price. The partnership anticipated 2018 performance will result in strong distributable cash flow and distribution coverage.

Alliance Resource’s focus on low-cost operation, multiple transportation option as well as diverse product and contract offering attract the domestic and international customers.

Other Stocks to Consider

Here are a few other players from the sector that have the right combination of elements to post an earnings beat this quarter.

Warrior Met Coal Inc. (HCC - Free Report) is expected to release third-quarter results on Oct 31. It has an Earnings ESP of +0.07% and a Zacks Rank #2.

Anadarko Petroleum Corp. (APC - Free Report) is expected to release third-quarter results on Oct 30. It has an Earnings ESP of +1.90% and a Zacks Rank #2.

Cloud Peak Energy Inc. (CLD - Free Report) is expected to release third-quarter results on Oct 25. It has an Earnings ESP of +4.76% and a Zacks Rank #3.

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