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What's in Store for Alliance Resource (ARLP) in Q3 Earnings?

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Alliance Resource Partners, L.P. (ARLP - Free Report) is scheduled to release third-quarter 2019 earnings on Oct 28, before the market opens.

Notably, the partnership delivered an average negative earnings surprise of 3.87% in the last four quarters.

Factors to Consider

Alliance Resource Partners’ third-quarter earnings are likely to have benefited from the acquisition of an additional 9000 net royalty acres in the Midland portion of the Permian basin, which was declared in the second quarter.  This acquisition is likely to have boosted the Mineral segment’s third-quarter performance.

The heat wave in July, which happened in the eastern U.S., has increased coal burning and must have boosted demand for coal during the quarter.

Keeping up with its usual trend, low-cost operations  are expected to have favored the firm against high cost coal producers amid  volatile market conditions and uncertainty in coal industry.

Q3 Expectations

The Zacks Consensus Estimate for third-quarter 2019 earnings per unit is pegged at 48 cents. The projected figure suggests year-over-year decline of 12.73%. The Zacks Consensus Estimate for third-quarter sales is pegged at $503.40 million, which indicates year-over-year rise of 1.13%.

Alliance Resource Partners, L.P. Price and EPS Surprise

 

 

What Our Quantitative Model Predicts

Our proven model doesn’t conclusively predict an earnings beat for Alliance Resource Partners this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is not the case here as you will see below. You can see the complete list of today’s Zacks #1 Rank stocks here.

Earnings ESP: The company’s Earnings ESP is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Currently, Alliance Resource Partners carries a Zacks Rank #3.

Stocks to Consider

Here are a few companies from the sector that you may want to consider as our model shows that these have the right combination of elements to post an earnings beat in the to-be-reported quarter.

Evergy Inc (EVRG - Free Report) has an Earnings ESP of +2.55% and carries a Zacks Rank #3. The company is expected to report third-quarter 2019 results on Nov 6.

Plains All American Pipeline, L.P. (PAA - Free Report) has an Earnings ESP of +10.13% and a Zacks Rank #3. The company is expected to release third-quarter 2019 results on Nov 5.

HollyFrontier Corporation has an Earnings ESP of +2.53% and a Zacks Rank #3. The company is expected to report third-quarter 2019 results on Oct 31.

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Evergy Inc. (EVRG) - free report >>

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