Will CNX Resources (CNX) Beat Estimates Again in Its Next Earnings Report? – July 17, 2024

If you’re looking for a stock that has a solid history of beating earnings estimates and is well-positioned to continue that trend into its next quarterly report, you should consider CNX Resources Corporation. (CNX – Free report.) This company, which operates in the Zacks Oil and Gas – Exploration and Production – United States industry, shows the potential for further financial outperformance.

This company has had a good streak of beating earnings estimates, especially looking at the last two reports. The average surprise over the last two quarters was 88.43%.

For the last quarter, CNX Resources was expected to post earnings of $0.36 per share but instead the company posted earnings of $0.45 per share, delivering a surprise of 25%. For the previous quarter, the consensus estimate was $0.27 per share when in reality the company posted earnings of $0.68 per share, delivering a surprise of 151.85%.

Price and EPS are surprising

In the case of CNX Resources, estimates are trending higher, thanks in part to this earnings surprise history. And when you look at the stock’s positive Zacks Earnings ESP (Expected Surprise Prediction), it’s a great indicator of future earnings beats, especially when paired with its solid Zacks Rank.

Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better deliver a positive surprise almost 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat consensus estimates could be as many as seven.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a revision of the Zacks Consensus definition that is related to revision. The idea is that the analysts revising their estimates just before an earnings release have the latest information, which could potentially be more accurate than what they and other contributors to the consensus had previously predicted.

CNX Resources currently has an Earnings ESP of +6.21%, suggesting that analysts have recently become bullish on the company’s earnings prospects. This positive Earnings ESP, combined with the stock’s Zacks Rank #3 (Hold), indicates that another beat is likely just around the corner. We expect the company’s next earnings report to be released on July 25, 2024.

In the case of the Earnings ESP indicator, it is important to remember that a negative value reduces its predictive power; however, a negative Earnings ESP value does not mean that profits have not been achieved.

Many companies end up beating consensus EPS estimates, but that may not be the only basis for their stock growth. On the other hand, some stocks can maintain their position even if they end up missing consensus estimates.

For this reason, it is very important to check a company’s Earnings ESP before its quarterly release to increase your chances of success. Make sure you use our Earnings ESP Filter to discover the best stocks to buy or sell before they are released.