Consol Energy Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Consol Energy (NYSE:CNX) will unveil its latest earnings tomorrow, Thursday, January 31, 2013. Consol Energy is a coal and gas energy producer and energy services provider that mainly serves the electric power generation industry in the United States.

Consol Energy Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 22 cents per share, a decline of 69% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 26 cents. Between one and three months ago, the average estimate moved down. It has risen from 21 cents during the last month. For the year, analysts are projecting net income of 89 cents per share, a decline of 70.7% from last year.

Past Earnings Performance: For the past three quarters, the company’s quarterly results have come in below analyst’s expectations. Last quarter, the company reported net loss of 5 cents per share versus a mean estimate of profit of 2 cents per share.

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A Look Back: In the third quarter, the company swung to a loss of $11.4 million (5 cents a share) from a profit of $167.3 million (73 cents) a year earlier, missing analyst expectations. Revenue fell 23.8% to $1.16 billion from $1.52 billion.

Here’s how Consol Energy traded following its last earnings report 3 months ago and leading up to its upcoming earnings report this week:


Wall St. Revenue Expectations: On average, analysts predict $1.29 billion in revenue this quarter, a decline of 16.2% from the year-ago quarter. Analysts are forecasting total revenue of $5.26 billion for the year, a decline of 14.1% from last year’s revenue of $6.12 billion.

Analyst Ratings: With 15 analysts rating the stock a buy, one rating it a sell and four rating the stock a hold, there are indications of a bullish stance by analysts.

Key Stats:

On the top line, the company is hoping to use this earnings announcement to snap a string of three-straight quarters of revenue declines. Revenue fell 2.6% in the first quarter and 8.4% in second quarter before falling again in the third quarter.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.28 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term. The company regressed in this liquidity measure from 1.32 in the second quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 4.8% to $1.33 billion while assets rose 1.8% to $1.71 billion.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)