Alpha Natural Resources Earnings Approach

Alpha Natural Resources, Inc. (NYSE:ANR) will unveil its latest earnings on Friday, November 2, 2012. Alpha Natural Resources is a supplier and exporter of metallurgical coal for use in the steel-making process and a major supplier of thermal coal to electric utilities and manufacturing industries across the country.

Alpha Natural Resources, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net loss of 44 cents per share, up from net income of 35 cents in the year-earlier quarter. During the past three months, the average estimate has moved down from a loss of 25 cents. Between one and three months ago, the average estimate moved down. It also has dropped from a loss of 41 cents during the last month. For the year, analysts are projecting a loss of $1.49 per share, a spike from profit of $1.57 last year.

Past Earnings Performance: The company showed net loss of 33 cents per share versus a mean estimate of a loss of last quarter. This marks the fourth month of falling short of estimates.

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A Look Back: In the second quarter, the company’s loss widened to a loss of a $2.23 billion ($10.14 a share) from a loss of $56.4 million (36 cents) a year earlier, missing analyst expectations. Revenue rose 16% to $1.85 billion from $1.59 billion.

Stock Price Performance: Between August 31, 2012 and October 29, 2012, the stock price had risen $2.77 (46.6%), from $5.94 to $8.71. The stock price saw one of its best stretches over the last year between September 4, 2012 and September 11, 2012, when shares rose for six straight days, increasing 34.7% (+$1.92) over that span. It saw one of its worst periods between September 14, 2012 and September 25, 2012 when shares fell for eight straight days, dropping 23.5% (-$2.01) over that span.

Wall St. Revenue Expectations: Analysts predict a decline of 27% in revenue from the year-earlier quarter to $1.68 billion.

Key Stats:

The company enters this earnings announcement with substantial revenue momentum. The company has averaged year-over-year revenue growth of 81.6% over the last four quarters.

Analyst Ratings: With nine analysts rating the stock as a buy, two rating it as a sell and nine rating it as a hold, there are indications of a bullish outlook.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.34 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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