What Can We Expect from Consol Energy’s 3Q16 Earnings?

Consol Energy (CNX) is set to report its 3Q16 earnings on November 1, 2016, before the market opens. For 3Q16, Wall Street analysts expect Consol Energy to report revenue of ~$562 million, ~27% lower than the 3Q15 revenue of ~$766 million.

When compared sequentially with 2Q16, Consol Energy’s 3Q16 revenue expectations are almost flat. The YoY (year-over-year) lower revenue expectations for 3Q16 are the direct result of lower natural gas (UGAZ) (DGAZ) (UNG) prices.

Due to the downward trend in energy prices, upstream peers Southwestern Energy (SWN), Murphy Oil (MUR), and Range Resources (RRC) are expecting ~16%, ~30% and ~23% YoY declines in their 3Q16 revenue, respectively. While the Vanguard Energy ETF (VDE) invests in the broader energy market, the Vanguard Energy ETF (VDE) invests in the broader energy market.

For 3Q16, Wall Street analysts expect Consol Energy to report adjusted EPS (earnings per share) of -$0.11, -$0.17 higher that the 3Q15 EPS of -$0.28. However, when compared sequentially with 2Q16, Consol Energy’s 3Q16 earnings expectations are $0.10 higher per share.

For 3Q16, Wall Street analysts expect Consol Energy to report EBITDA (earnings before interest, tax, depreciation and amortization) of ~$154 million, ~55% higher than the 3Q15 adjusted EBITDA of ~$99 million. Even when compared sequentially with 2Q16 earnings, Consol Energy’s 3Q16 EBITDA expectations are ~11% higher.

In addition to analyzing CNX’s 3Q16 revenue and earnings expectations, in the course of this series, we’ll look at Consol Energy’s earnings trends, production guidance, analyst recommendations, and how its stock has reacted to past earnings results.