What to Expect from Cloud Peak Energy’s 3Q17 Earnings

Series overview

Cloud Peak Energy (CLD) is expected to announce its 3Q17 earnings on October 27, 2017, after market hours. In this series, we’ll look at Wall Street analysts’ expectations and recommendations for Cloud Peak Energy’s 3Q17 earnings.

We’ll discuss the parameters that led analysts to arrive at these estimates. We’ll also look at Cloud Peak Energy’s 2017 guidance and the major indicators that investors should watch.

What to Expect from Cloud Peak Energy’s 3Q17 Earnings

Cloud Peak Energy’s stock performance

On October 24, 2017, Cloud Peak Energy’s (CLD) stock price had risen 31.7% since the release of its 2Q17 earnings. CLD stock has fallen 20.0% on a year-to-date (or YTD) basis.

President Donald Trump signed an order on March 28, 2017, to repeal environmental rules and regulations implemented during the Obama administration. Although these reforms are expected to impact the coal industry positively, Cloud Peak Energy and its peers have seen their stock prices fall.

The new guideline includes the reversal of the DOI’s[1. Department of Interior] 2016 moratorium on leasing federal land by private companies to coal producers. However, the reversal is not expected to improve short-term coal production.

Peer performance

On October 24, 2017, Cloud Peak Energy’s peer Westmoreland Coal Company (WLB) fell ~87.4% on a YTD basis and 47.3% during the last three months. Alliance Resource Partners (ARLP) witnessed a 0.3% fall during the last three months and 11.1% on a YTD basis.

CNX Coal Resources (CNXC) fell 3.8% during the last three months and 15.6% year-to-date.

The VanEck Vectors Coal ETF (KOL) rose ~13.2% during the last three months and 22.3% year-to-date. KOL tracks the overall performance of prominent coal-producing companies around the world.

In the next part of this series, we’ll look at analysts’ ratings for Cloud Peak Energy.