Peabody Energy Earnings: Revenue Meets Analysts’ View

S&P 500 (NYSE:SPY) component Peabody Energy Corporation (NYSE:BTU) reported a lower net income in third quarter, missing analysts’ estimates. Peabody Energy mines steam coal for sale mainly to electric utilities and metallurgical coal for sale to industrial customers.

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Peabody Energy Corporation Earnings Cheat Sheet

Results: Net income for Peabody Energy Corporation fell to $42.9 million (16 cents per share) vs. $274.1 million ($1 per share) a year earlier. This is a decline of 84.3% from the year-earlier quarter.

Revenue: Rose 3.9% to $2.06 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Peabody Energy Corporation fell short of the mean analyst estimate of 53 cents per share. Analysts were expecting revenue of $2.06 billion.

Quoting Management: “The Peabody team delivered strong third quarter results, as expanded U.S. margins, record Australian volumes and aggressive cost control largely offset price declines in Australia,” said Peabody Energy Chairman and Chief Executive Officer Gregory H. Boyce. “Peabody remains focused on significant cost containment and capital discipline activities and expects to realize the benefit of these programs over the next year. While the global coal environment remains challenged, there are indications that markets are stabilizing through U.S. gas-to-coal switching, higher European coal-fueled generation and increased China infrastructure spending.”

Key Stats:

The company’s net income has fallen for the last three quarters. In the second quarter, net income fell 28.1% from the year earlier, while the figure fell 2.2% in the first quarter.

The company fell short of forecasts after beating estimates in the previous two quarters. In the second quarter, it topped the mark by 11 cents, and in the first quarter, it was ahead by 5 cents.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the fourth quarter has moved down from 67 cents a share to 64 cents over the last ninety days. For the fiscal year, the average estimate has moved down from $2.67 a share to $2.53 over the last sixty days.

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

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