Peabody Energy Corp.

Peabody Energy Corp. (BTU - Analyst Report) just posted amazing third-quarter results. The company's share price is trading sharply lower on the year, creating an opportunity to purchase shares in this growth stock at a discounted price.

Company Description

Peabody Energy Corp. engages in the exploration and production of coal worldwide. The company owns interest in 31 coal operations in the United States, Australia and Venezuela. Peabody has a market cap of $7.7 billion.

Amazing Third-Quarter Results

Peabody pleased its shareholders by stepping up and reporting amazing third-quarter results just yesterday, Oct 16. Revenue increased to $1.9 billion from $1.2 billion last year. Net income sky-rocketed to $369 million from $32.3 million last year. This produced earnings of $1.36 per share, blowing past analyst estimates of 87 cents.

Consistent Earnings

Peabody has been able to produce consistent and reliable income over the last four quarters, having surprised and beaten analyst estimates over the last four quarters by an average of 40%.

Guidance Raised

After the great quarter, Peabody raised its full-year earnings guidance to between $3 and $3.25 per share, up from the previous range between $2.50 and $3.

Analyst Estimates

The analyst community is bullish on Peabody's longer-term prospects, with the next-year estimate pegged at $6.18 per share, a 114% earnings growth projection.

Valuations

Based upon the current-year estimate, this stock is trading at a discount to the overall market, carrying a forward P/E multiple of 9.4X.

The Chart

Shares of BTU have taken a beating this year, but this downward pressure belies the companies strong fundamental composition. Peabody just posted an awesome quarter, and at these levels, this stock looks like a bargain. Take a look at the chart.

Read the full analyst report on BTU