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CONSOL Energy Inc. (NYSE:CEIX) Analysts Are Cutting Their Estimates: Here's What You Need To Know

It's been a mediocre week for CONSOL Energy Inc. (NYSE:CEIX) shareholders, with the stock dropping 10% to US$85.78 in the week since its latest annual results. CONSOL Energy reported in line with analyst predictions, delivering revenues of US$2.6b and statutory earnings per share of US$19.79, suggesting the business is executing well and in line with its plan. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for CONSOL Energy

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Taking into account the latest results, the current consensus, from the dual analysts covering CONSOL Energy, is for revenues of US$1.97b in 2024. This implies a concerning 23% reduction in CONSOL Energy's revenue over the past 12 months. Statutory earnings per share are forecast to plunge 40% to US$12.65 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$2.25b and earnings per share (EPS) of US$16.44 in 2024. It looks like sentiment has declined substantially in the aftermath of these results, with a real cut to revenue estimates and a pretty serious reduction to earnings per share numbers as well.

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The analysts made no major changes to their price target of US$105, suggesting the downgrades are not expected to have a long-term impact on CONSOL Energy's valuation.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the CONSOL Energy's past performance and to peers in the same industry. We would highlight that revenue is expected to reverse, with a forecast 23% annualised decline to the end of 2024. That is a notable change from historical growth of 16% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 0.7% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - CONSOL Energy is expected to lag the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for CONSOL Energy. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. The consensus price target held steady at US$105, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for CONSOL Energy that you should be aware of.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.