The Market Liked Consol Energy’s 1Q16 Results: CNX Stock Rose

Is Consol Energy’s Rally Justified after Its 1Q16 Earnings Release?

(Continued from Prior Part)

Consol Energy’s stock action on the day of its 1Q16 earnings

Consol Energy (CNX) announced its 1Q16 earnings on April 26, 2016, before the Market opened. After the announcement, Consol Energy stock rose 8.1% to close at $14.16. In intraday action, Consol Energy stock was trading lower by ~6%, but it saw a strong reversal midday to close in the positive.

We should note that in three months before the earnings release, Consol Energy stock had already increased a whopping ~184%. This was mainly due to the increase in natural gas prices during the same period.

Consol Energy stock trend

Falling crude oil (UCO) and natural gas (UGAZ) prices over the last two years have led to a falling trend in the entire upstream sector. But since January 2016, as you can see in the above graph, Consol Energy stock is in a new uptrend. It’s clearly making a pattern of higher highs and higher lows.

CNX’s 2016 relative performance

For 2016, Consol Energy is outperforming other upstream companies. It has risen ~79%, whereas other oil and gas producers such as Carrizo Oil & Gas (CRZO), EP Energy (EPE), and Gulfport Energy (GPOR) have risen ~21%, ~8%, and ~24%, respectively. Carrizo Oil & Gas and EP Energy produces more liquids in their production mixes, whereas Gulfport Energy is primarily a natural gas producer.

Consol Energy stock behavior after its earnings beats

In the last six quarters, CNX has beat earnings expectations twice, in 4Q14 and 1Q15. The post-earnings reactions in those two quarters were decidedly positive, mainly due to better-than-expected earnings results.

Browse this series on Market Realist:

• Part 1 - Consol Energy’s 1Q16 Earnings: Better Than Analyst Consensus

• Part 2 - Did Operational Performance and Strategies Hurt Consol Energy?

• Part 3 - Analyst Ratings for Consol Energy: A Toss-Up of ‘Buy’ or ‘Hold’