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How CONSOL Energy’s Stock Price Reacted after Past Earnings Misses

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CONSOL Energy’s stock price action following 2Q16 earnings

CONSOL Energy (CNX) announced its 2Q16 earnings on July 26, 2016, before the markets opened. After its 2Q16 earnings were announced, CONSOL Energy’s stock price increased by ~12% in three trading sessions.

It must be noted that in the last three months leading into the earnings, CONSOL Energy’s stock price has increased by ~21%, mainly due to the ~25% bounce in natural gas (UNG) (UGAZ) (DGAZ) prices during the same period.

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CONSOL Energy’s stock price trend change

After losing ~91% of its market capitalization between June 2014 and January 2016, CONSOL Energy’s (CNX) stock price is finally showing signs of an uptrend. In February 2016, as seen in the above chart, CONSOL Energy’s stock price made a higher high for the first time in almost two years. Since the January 2016 bottom, CONSOL Energy’s stock price is up by a whopping ~323%.

CNX’s 2016 relative performance

For 2016, CNX is outperforming bigger upstream companies from the S&P 500 (SPY). For 2016, CNX is up by ~143%, whereas bigger oil and gas producers like Devon Energy (DVN), Pioneer Natural Resources (PXD), and EOG Resources (EOG) are up by ~14%, ~26%, and ~14%, respectively.

CNX’s stock price behavior after past earnings misses

In the last six quarters, CNX’s earnings beat expectations in 4Q15, 3Q15, and 2Q15. CNX reported its 4Q15 earnings before the markets opened on January 29, 2016. In 4Q15, excluding the one-time items, CNX reported a loss of $0.11 per share, $0.02 worse than the consensus for a loss of $0.09 per share. Following the earnings release, in a contrarian reaction, worse-than-expected earnings saw CONSOL Energy’s stock price rise by ~35% in just six sessions.

In 3Q15, CNX reported a loss of $0.28 per share, $0.25 worse than the consensus for a loss of $0.03 per share. Following the earnings release, worse-than-expected earnings saw CONSOL Energy’s stock price decline by ~25% in just four sessions.

A downward reaction occurred after 2Q15 earnings when CNX’s stock price fell by ~32% in about four weeks after missing the consensus earnings estimates by $0.37 per share.

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