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CNX Coal (CNXC) to Report Q2 Earnings: What's in Store?

CNX Coal Resources LP CNXC will report second-quarter 2017 financial results after the closing bell on Jul 31. Last quarter, the company reported negative earnings surprise of 9.09%.
    
Let’s see how things are shaping up prior to this announcement.

Factors to Consider

CNX Coal Resources is well positioned to benefit from the supply challenges resulting out of Australian export disturbances in the second quarter. CNX Coal Resources’ capitalization efforts to capture the broad market and continued cost control measures are likely to benefit the margins. With the support of domestic customers, it is well positioned to ship coal and increase overall shipment volumes.

On the contracting front, CNXC’s marketing team worked on adding strategic customers as commodity markets continue to evolve. The company was able to raise its share in 15 coal plants from 12% in 2011 to 31% in 2016 and we expect these initiatives will further increase CNX Coal Resources’ share in these coal plants. In addition, President Trump’s decision to repeal the Clean Power Plan and walk out of Paris Agreement will help the coal producers by creating fresh demand for thermal coal.

Earnings Whispers

Our proven model does not conclusively show that CNX Coal Resources is likely to beat estimates this quarter. That is because 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. But that is not the case here, as you will see below.

Zacks ESP: CNX Coal Resources’ Earnings ESP is 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate is pegged at 51 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: CNX Coal Resources’ Zacks Rank #3 increases the predictive power of ESP. However, a 0.00% ESP makes surprise prediction difficult.

CNX Coal Resources LP Price, Consensus and EPS Surprise

 

We caution against stocks with a Zack Rank #4 or #5 (Sell-rated) going into the earnings announcement, especially when the company is witnessing negative estimate revisions.

Stocks to Consider

In absence of companies from the industry, investors can consider these stocks from the oil & energy sector, which have the right combination to beat estimates beat this quarter.

TransCanada Corporation TRP has an Earnings ESP of +7.84% and a Zacks Rank #1. It is slated to report first-quarter results on Jul 28. You can see the complete list of today’s Zacks #1 Rank stocks here.

Global Partners LP GLP has an Earnings ESP of +60% and a Zacks Rank #1. It is slated to report first-quarter results on Aug 14.

Boardwalk Pipeline Partners L.P. BWP has an Earnings ESP of +6.90% and a Zacks Rank #2. It is slated to report first-quarter results on Jul 31.

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Boardwalk Pipeline Partners L.P. (BWP): Free Stock Analysis Report
 
CNX Coal Resources LP (CNXC): Free Stock Analysis Report
 
Global Partners LP (GLP): Free Stock Analysis Report
 
TransCanada Corporation (TRP): Free Stock Analysis Report
 
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