CONSOL (NYSE:CNX) Versus Arch (NYSE:ACI) Roundup


The CONSOL Energy Inc (NYSE:CNX) figures for the third quarter were revealed on Tuesday. The company seems to have taken a hit in terms of earnings per share. This quarter, the EPS was $0.09, lower than $0.23 from last year’s third quarter. But in terms of revenue, CONSOL (NYSE:CNX) this year earned $884.62, well above $803.35 of last year. The consensus by Thomas Reuters was of EPS at $0.19 and $889.06 million in revenue.

On the other hand, Arch Coal Inc (NYSE:ACI) also announced its quarterly figures. The firm did exceptionally well as compared to last year, this time around. Its earnings per share were of $0.45 and revenues built up to $742.2 million. Last year the EPS was $0.38 and revenue was $791.3. The experts in the field predicted an EPS of $0.41 and revenue total of $719.33 million.

Since the results didn’t seem to guarantee a much better fourth quarter or entire year, the company’s guidance is taken into question. CONSOL (NYSE:CNX) expects its natural gas production to rise between 235 billion and 240 billion, by the end of the year, and an overall increase in terms of growth by 30% for two consecutive years. For its low volatility coal, the company anticipates rise in volume and price. But the thermal coal guidance remains unchanged. These expectations are set, regardless of the fact that the company faced a fall in low volatility coal by half this year and a 30% decrease in its thermal coal.

Arch Coal (NYSE:ACI), on the other hand sets expectations to meet its 124 million to 130 million tons of thermal coal sales as well as 6.3 million to 6.9 million of metallurgical coal sales. It’s tied its hopes with the Appalachian region mines, where thermal prices average out, and the met prices make up the difference.

Arch Coal (NYSEACI)’s western thermal operations did exceptionally well this quarter, due to rise in shipment levels; higher prices and a good control over the cost. In the next quarter and the coming year, analysts have similar expectations from the western thermal operations, in the Powder River Basin, as improved rail services are being considered.

The CONSOL (NYSE:CNX) CEO, also made a public statement about catering to electricity generators in the quarters to come, providing them thermal coal. CONSOL (NYSE:CNX) also expects its relationship with its clients, strong reputation and stable financial figures to play a vital role to help them achieve their objectives for the coming quarters.

Arch Coal (NYSEACI) has its earnings per share set up at $1.90, in a 52 week range of $1.35 to $5.37. Whereas the Thomas Reuters price target estimates are at $2.90.

CONSOL (NYSE:CNX) shares were considered inactive for premarket trading and fell 1.3% by Monday to $34.23. The 52 week range is expected at $31.64 to $48.30. The Thomas Reuters has them up for $5.10 price target.  There are varying trends in the actual and predicted figures and it remains to be seen if these will converge at some point.