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CONSOL Energy (CEIX) Q3 Earnings, Revenues Miss Estimates

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CONSOL Energy Inc.’s (CEIX - Free Report) third-quarter 2018 adjusted earnings of 20 cents per share missed the Zacks Consensus Estimate of 53 cents by a solid 62.3%. Moreover, the bottom line declined year over year by 28.6%.

Revenues

CONSOL Energy’s total revenues of $324.3 million lagged the Zacks Consensus Estimate of $339 million by 4.3%. Also, the top line was down by 3.3% year over year. The primary reason behind this downside was weak freight revenues, which declined nearly 88.8% year over year.

Consol Energy Inc. Price, Consensus and EPS Surprise

Operational Highlights

Average revenues per ton sold in the quarter were $47.21, up 6.9% from the year-ago figure of $44.16. This year-over-year improvement was benefited from a stronger pricing on export sales and domestic netback contracts.

Average cash cost of coal sales per ton in the reported quarter was $30.88, 0.2% lower than the year-ago figure of $30.94. This upside was largely driven by a $1.34 per ton reduction in lease or rental expense, partially offset by higher mine maintenance and supply costs.

Total cost of coal sold was $315.9 million, down 2.2% from $323 million a year ago.

Interest expenses were $20.9 million, skyrocketing 440.2% above $3.9 million in the year-ago period.

Financial Update

As of Sep 30, 2018, CONSOL Energy had cash of $250.5 million, up from $154 million as of Dec 31, 2017.

Total long-term debt as of Sep 30, 2018 was $857 million, lower than $865.3 million as of Dec 31, 2017.

Cash from operating activities for the third quarter was $330.3 million, up 92.4% from $171.7 million in the prior-year quarter.

Capital expenditure was $96.9 million, higher than the year-earlier level of $51 million.

Guidance

CONSOL Energy expects coal sales volume (100% PAMC) for 2018 in the range of 26.9-27.5 million tons. Also, average revenue per ton sold is likely to be in the band of $48.40-$48.85.

Adjusted EBITDA is estimated within $450-$485 million. Capital expenditures are anticipated to be within $130-$145 million.

Zacks Rank

CONSOL Energy currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Upcoming Coal Releases

Contura Energy is scheduled to report third-quarter 2018 results on Nov 26. The Zacks Consensus Estimate for quarterly earnings is pegged at $4.03 per share.

Romaco Resources (METC - Free Report) is scheduled to report third-quarter 2018 results on Nov 14. The Zacks Consensus Estimate for quarterly bottom line is pegged at 30 cents per share.

Natural Resource Partners LP (NRP - Free Report) is scheduled to report third-quarter 2018 results on Nov 7. The Zacks Consensus Estimate for quarterly earnings per unit stands at $1.40.

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