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CONSOL Energy (CEIX) Q3 Earnings, Revenues Miss Estimates

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  • CEIX
  • NRP

CONSOL Energy Inc.’s CEIX third-quarter 2018 adjusted earnings of 20 cents per share missed the Zacks Consensus Estimate of 53 cents by a solid 62.3%. Moreover, the bottom line declined year over year by 28.6%.

Revenues

CONSOL Energy’s total revenues of $324.3 million lagged the Zacks Consensus Estimate of $339 million by 4.3%. Also, the top line was down by 3.3% year over year. The primary reason behind this downside was weak freight revenues, which declined nearly 88.8% year over year.

Consol Energy Inc. Price, Consensus and EPS Surprise

Consol Energy Inc. Price, Consensus and EPS Surprise | Consol Energy Inc. Quote

Operational Highlights

Average revenues per ton sold in the quarter were $47.21, up 6.9% from the year-ago figure of $44.16. This year-over-year improvement was benefited from a stronger pricing on export sales and domestic netback contracts.

Average cash cost of coal sales per ton in the reported quarter was $30.88, 0.2% lower than the year-ago figure of $30.94. This upside was largely driven by a $1.34 per ton reduction in lease or rental expense, partially offset by higher mine maintenance and supply costs.

Total cost of coal sold was $315.9 million, down 2.2% from $323 million a year ago.

Interest expenses were $20.9 million, skyrocketing 440.2% above $3.9 million in the year-ago period.

Financial Update

As of Sep 30, 2018, CONSOL Energy had cash of $250.5 million, up from $154 million as of Dec 31, 2017.

Total long-term debt as of Sep 30, 2018 was $857 million, lower than $865.3 million as of Dec 31, 2017.

Cash from operating activities for the third quarter was $330.3 million, up 92.4% from $171.7 million in the prior-year quarter.

Capital expenditure was $96.9 million, higher than the year-earlier level of $51 million.

Guidance

CONSOL Energy expects coal sales volume (100% PAMC) for 2018 in the range of 26.9-27.5 million tons. Also, average revenue per ton sold is likely to be in the band of $48.40-$48.85.

Adjusted EBITDA is estimated within $450-$485 million. Capital expenditures are anticipated to be within $130-$145 million.

Zacks Rank

CONSOL Energy currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Upcoming Coal Releases

Contura Energy CNTE is scheduled to report third-quarter 2018 results on Nov 26. The Zacks Consensus Estimate for quarterly earnings is pegged at $4.03 per share.

Romaco Resources METC is scheduled to report third-quarter 2018 results on Nov 14. The Zacks Consensus Estimate for quarterly bottom line is pegged at 30 cents per share.

Natural Resource Partners LP NRP is scheduled to report third-quarter 2018 results on Nov 7. The Zacks Consensus Estimate for quarterly earnings per unit stands at $1.40.

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