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Peabody (BTU) Q3 Earnings Miss, Revenues Beat Estimates

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Peabody Energy Corp. (BTU - Free Report) announced third-quarter 2018 earnings of 63 cents per share, which missed the Zacks Consensus Estimate of $1.29 by 51.1%. The company had posted earnings of $1.49 in third-quarter 2017.

Revenues

Peabody Energy’s quarterly revenues of $1,412.6 million fell 4.4% year over year from $1,477.2 million in the year-ago quarter, primarily due to lower Australian and U.S. sales volumes. However, revenues beat the Zacks Consensus Estimate of $1,378 million by 2.5%.

Peabody Energy Corporation Price, Consensus and EPS Surprise

Peabody Energy Corporation Price, Consensus and EPS Surprise | Peabody Energy Corporation Quote

Operational Update

The company’s total sales volume in the quarter was 49.1 million tons, down from 52.0 million tons registered in the year-ago quarter.  Sales volume during the quarter was impacted by lower Mining Operations in U.S as well as Australian operations.

Operating costs and expenses incurred in the reported quarter increased 0.8% year over year to $1,047.9 million from $1,039.1 million in the prior-year quarter.

Revenues per ton in the United States inched down 1.0% year over year to $18.19 and cost per ton jumped 4.3% from the year-ago quarter’s level to $14.36.

The company’s Australian operations reported revenues per ton of $88.88, up 12.3% year over year, while cost per ton increased 13% to $57.83.

Operating profit in third-quarter 2018 was $130.3 million compared with $209.5 million in the year-ago quarter.

Financial Update

As of Sep 30, cash and cash equivalents amounted to $1,371 million compared with $1,012.1 million on Dec 31, 2017.

Long-term debt of the company was $1,334.2 million as of Sep 30, down from year-end 2017 level of $1,418.7 million.

Free cash flow in the reported quarter was $297.9 million, compared with $231.6 million in the year ago quarter.

Guidance

Peabody Energy expects 2018 total U.S. sales volume in the range of 147.5-154.5 million short tons and Total Australia sales volume in the range of 29.5-32.5 million short tons.

For 2018, the company reaffirmed capital expenditure in the range of $275-$325 million.

Zacks Rank

Currently, Peabody Energy carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other Coal Releases

Arch Coal Inc. (ARCH - Free Report) delivered third-quarter 2018 operating earnings of $6.33 per share, which beat the Zacks Consensus Estimate of $3.02 by 109.6%.

Cloud Peak Energy’s reported earnings of 16 cents per share in third-quarter 2018, which beat the Zacks Consensus Estimate of a loss of 8 cents by 300%.

Alliance Resource Partners, L.P. (ARLP - Free Report) reported third-quarter 2018 operating earnings of 55 cents per unit, which missed the Zacks Consensus Estimate of 74 cents per unit by 25.7%.

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