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Cloud Peak Energy Inc CLD is scheduled to report second-quarter 2018 results on Jul 26. In first-quarter 2018, the coal company reported a negative earnings surprise of 25%.
Let’s see, how things are shaping up at the company prior to this announcement.
Factors to Consider
In the first quarter, Cloud Peak Energy exported 1.4 million tons of coal. The company is poised to benefit from the coal export in the second quarter as it has a contracted selling price, which is $2-$3 per ton higher than the first quarter. The company expects to gain 50% of the increased prices as it has to incur higher rail rate in Montana severance taxes.
The company has contracted 3.3 million tons for export delivery in 2018 at improved prices. The expected increase in export volumes from some Asian countries like China, South Korea and Japan are anticipated to boost Cloud Peak Energy’s coal production, which is likely to be reflected in the upcoming quarterly results.
The Zacks Consensus Estimate for second-quarter total revenues has increased 0.44% to $230 million from the same period last year.
Cloud Peak Energy Inc Price and EPS Surprise
Cloud Peak Energy Inc Price and EPS Surprise | Cloud Peak Energy Inc Quote
Our proven model does not conclusively show that Cloud Peak Energy is likely to beat on earnings this earnings season. This is because a stock needs to have both a positive Earnings ESP and a favorable 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.
Earnings ESP: Cloud Peak Energy has an Earnings ESP of 0.00%. This is because both the Most Accurate Estimate and the Zacks Consensus Estimate is pegged at a loss of 13 cents per share.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Cloud Peak Energy has an Earnings ESP of 0.00%. This is because both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at a loss of 13 cents per share.
We caution against Sell-rated stocks (#4 or 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are a few players from the Sector with the right combination of elements to beat on earnings this reporting cycle.
Canadian Natural Resources Limited CNQ has an Earnings ESP of +1.42% and a Zacks Rank of 1. It is expected to report second-quarter 2018 results on Aug 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Consol Energy Inc. CEIX is expected to report second-quarter 2018 results on Aug 2. The company has an Earnings ESP of +7.24% and is a Zacks #2 Ranked player.
Warrior Met Coal Inc HCC has an Earnings ESP of +3.17% and a Zacks Rank #2. The company is expected to report second-quarter 2018 results on Aug 1.
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Cloud Peak Energy Inc (CLD) : Free Stock Analysis Report
Warrior Met Coal Inc. (HCC) : Free Stock Analysis Report
Canadian Natural Resources Limited (CNQ) : Free Stock Analysis Report
Consol Energy Inc. (CEIX) : Free Stock Analysis Report
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