Analysts Just Shaved Their CONSOL Energy Inc. (NYSE:CEIX) Forecasts Dramatically
Market forces rained on the parade of CONSOL Energy Inc. (NYSE:CEIX) shareholders today, when the analysts downgraded their forecasts for this year. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting the analysts have soured majorly on the business.
Following the latest downgrade, the dual analysts covering CONSOL Energy provided consensus estimates of US$2.0b revenue in 2024, which would reflect a substantial 22% decline on its sales over the past 12 months. Statutory earnings per share are anticipated to plummet 43% to US$12.65 in the same period. Prior to this update, the analysts had been forecasting revenues of US$2.3b and earnings per share (EPS) of US$16.44 in 2024. Indeed, we can see that the analysts are a lot more bearish about CONSOL Energy's prospects, administering a substantial drop in revenue estimates and slashing their EPS estimates to boot.
View our latest analysis for CONSOL Energy
Despite the cuts to forecast earnings, there was no real change to the US$105 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 22% by the end of 2024. This indicates a significant reduction from annual growth of 16% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 0.9% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - CONSOL Energy is expected to lag the wider industry.
The Bottom Line
The most important thing to take away is that analysts cut their earnings per share estimates, expecting a clear decline in business conditions. Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that CONSOL Energy's revenues are expected to grow slower than the wider market. We're also surprised to see that the price target went unchanged. Still, deteriorating business conditions (assuming accurate forecasts!) can be a leading indicator for the stock price, so we wouldn't blame investors for being more cautious on CONSOL Energy after the downgrade.
Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.
Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are downgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
