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Is a Beat in Store for CNX Resources' (CNX) Q1 Earnings?

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CNX Resources Corporation (CNX - Free Report) is slated to report first-quarter 2019 financial results on Apr 30, before the opening bell. The company delivered a positive earnings surprise of 139.29% in the last reported quarter.

What Our Quantitative Model Predicts

Our proven model shows that CNX Resources is likely to beat earnings estimates in the to-be-reported quarter as it possesses the right combination of the key components. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. This is exactly the case here as you will see below.

Earnings ESP: The company’s Earnings ESP is +1.42%. This is because the Most Accurate Estimate currently stands at 22 cents, while the Zacks Consensus Estimate is pegged a penny lower.

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

Zacks Rank: Currently, CNX Resources has a Zacks Rank #3 (Hold). The company’s favorable rank, when combined with a positive ESP, increases the possibility of an earnings beat.

Note that we caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing a negative estimate revisions momentum.

Factors to Consider

CNX Resources’ strong production from Marcellus and Utica shales is expected to boost total output in the first quarter.

The company’s initiative to lower outstanding debts is likely to reduce capital servicing expenses, thereby boosting profitability in the to-be-reported quarter. The ongoing share repurchases and resultant drop in shares outstanding are anticipated to have a positive impact on earnings.

The Zacks Consensus Estimate for sales price of gas for the first quarter is pegged at $3.33 per thousand cubic feet, which indicates year-over-year growth of 11%. The expected improvement in realized prices is anticipated to boost the top line in the first quarter.

Other Stocks With Favorable Combination

In addition to CNX Resources, one can consider some other companies from the same industry that also have the right combination of elements to post an earnings beat in their upcoming quarterly release.

Devon Energy, Inc. (DVN - Free Report) is expected to release first-quarter results on Apr 30. It has an Earnings ESP of +7.80% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

WPX Energy Inc. is expected to release first-quarter results on May 1. It has an Earnings ESP of +3.02% and a Zacks Rank #3.
 
Apache Corporation (APA - Free Report) is scheduled to announce first-quarter results on May 1. It has an Earnings ESP of +6.67% and a Zacks Rank #2.

Zacks' Top 10 Stocks for 2019

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