CONSOL Energy Inc. Earnings Cheat Sheet: Margins Keep Growing, Net Income Climbs

S&P 500 (NYSE:SPY) component CONSOL Energy Inc. (NYSE:CNX) reported net income above Wall Street’s expectations for the third quarter. 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.

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CONSOL Energy Earnings Cheat Sheet for the Third Quarter

Results: Net income for CONSOL Energy Inc. rose to $167.3 million (73 cents per share) vs. $75.4 million (33 cents per share) in the same quarter a year earlier. This is a more than twofold rise from the year earlier quarter.

Revenue: Rose 12.8% to $1.52 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: CNX beat the mean analyst estimate of 67 cents per share. It beat the average revenue estimate of $1.39 billion.

Key Stats:

Last quarter marked the fifth consecutive quarter of gross margins expanding as the company’s gross margin expanded 3.5 percentage points to 36.3% from the year earlier quarter. Over that span, margins have grown on average 3.1 percentage points per quarter on a year-over-year basis.

The company has now seen net income rise in three straight quarters. In the second quarter, net income rose 16.1% and in the first quarter, the figure rose 91.6%.

Revenue has risen the past four quarters. Revenue increased 23.2% to $1.59 billion in the second quarter. The figure rose 18.2% in the first quarter from the year earlier and climbed 9.6% in the fourth quarter of the last fiscal year from the year-ago quarter.

The company beat estimates last quarter after being in line with expectations in the second quarter with net income of 76 cents per share.

Looking Forward: Over the past ninety days, the average estimate for the fourth quarter has fallen from 77 cents per share to 60 cents, indicating that analysts are growing pessisimistic about the company’s performance next quarter. The average estimate for the fiscal year is $2.90 per share, down from $3.04 ninety days ago.

Competitors to Watch: Peabody Energy Corporation (NYSE:BTU), Arch Coal, Inc. (NYSE:ACI), Alliance Holdings GP, L.P. (NASDAQ:AHGP), Intl. Coal Group, Inc. (NYSE:ICO), Patriot Coal Corporation (NYSE:PCX), Massey Energy Company (NYSE:MEE), Natural Resource Partners LP (NYSE:NRP), Alpha Natural Resources, Inc. (NYSE:ANR), James River Coal Company (NASDAQ:JRCC), and Oxford Resource Partners, LP (NYSE:OXF).

Investing Insights: Here’s Why Chipotle’s Stock Keeps Winning.

(Source: Xignite Financials)