CONSOL Energy Reports Rising Profit
In the second quarter, CONSOL Energy (NYSE: CNX) saw an increase in net income, mainly due to climbing revenue. What accounts for the company's strong revenue this quarter? Let's take a look behind the numbers and see what action you should take.
Earnings and Revenue:
CONSOL reported adjusted net income of $0.76/share, in line with analyst estimates. Revenue for the quarter topped estimates at $1.59 billion. EPS rose 17.2% while revenue climbed 23.2% from the same period last year.
CONSOL Energy's revenue has grown for the past five quarters at an average rate of 18.9%.
For the year, CONSOL Energy reported net income of $2.16 per share. The company fells short of analysts projections of $2.74. According to the reported number, the company's income rose 16.1% from last year's levels.
"Our coal and gas operations continued to show improved results in safety, with incidence rates down 25% from the year-earlier quarter," commented J. Brett Harvey, chairman and chief executive officer. "We exceeded our expectations on coal production and our sales team sold a record 1.5 million tons of Bailey coal into the high-vol coking coal market." "Strategically," continued Mr. Harvey, "CONSOL Energy is participating fully in the growth of global coal markets. In 2011, we plan to export 10 million tons, which should generate over $1 billion in revenue. In the second quarter, our Baltimore Terminal loaded a near-record 41 vessels and shipped 3.4 million tons of coal. To accommodate future growth, we are expanding our terminal, we are developing the BMX Mine in the Pittsburgh seam, and we are re-starting our Amonate Mining Complex. All three of these coal projects are driven by increased worldwide coal demand."
CONSOL Energy's industry, coal, is currently reporting price/earnings growth of 2.3%. 73.5%.
What to Do Next:
Those are the latest numbers from CONSOL Energy, including how the announcement compared to Wall Street estimates. Benzinga consistently provides earnings previews and recaps for major corporate events. Be sure to visit us next quarter for a full CONSOL Energy preview.