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Alpha Metallurgical (AMR) to Post Q1 Earnings: What's in Store?

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Alpha Metallurgical Resources (AMR - Free Report) is scheduled to report first-quarter 2022 results on May 5, before the opening bell.

Q1 Estimates

The Zacks Consensus Estimate for Alpha Metallurgical Resources’ first-quarter revenues is currently pegged at $876 million, suggesting year-over-year growth of 127%. The consensus mark for earnings currently stands at $18.49 per share, unchanged over the past 30 days. The consensus mark indicates a turnaround performance from a loss per share of $1.78 in the first quarter of 2021.

Q4 Performance

In the fourth quarter, Alpha Metallurgical reported year-over-year improvement in both revenues and earnings. The company beat the Zacks Consensus Estimate on both the top and bottom lines. The company has a trailing four-quarter negative earnings surprise 58.2%, on average.

Factors to Note

Alpha Metallurgical’s first-quarter results are likely to reflect the ongoing strength in the coal markets and elevated global pricing dynamics. Coal prices through the quarter have been supported by skyrocketing demand amid tight supplies of alternative energy products and sanctions on Russian coal. Markets were already tight even before Russia’s invasion of Ukraine as the energy crisis and soaring natural gas prices in Europe and Asia in late 2021 boosted coal use for power generation. Higher realized prices might have aided AMR’s top-line performance in the quarter-to-be-reported.

As pricing for its products remain elevated, AMR has been witnessing higher cost of coal sales, particularly for royalties and taxes that are tied directly to sales price. On top of this, inflationary pressure and increased labor costs add to the margin pressure in the quarter to be reported. The company has been lowering its debt level, which is expected to have led to lower interest expense. This, in addition to the company’s efforts to control costs and improve productivity, may have negated the impact of high costs and aided margins in the first quarter.

What the Zacks Model Unveils

Our proven model doesn’t conclusively predict an earnings beat for Alpha Metallurgical Resources this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can see the complete list of today’s Zacks #1 Rank stocks here.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Earnings ESP: The Earnings ESP for Alpha Metallurgical Resources is 0.00%.

Zacks Rank: AMR currently carries a Zacks Rank of 1.

Price Performance

Zacks Investment Research
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Shares of Alpha Metallurgical Resources have skyrocketed 1,101.4% over the past year, against the industry's decline of 5.9%.

Stocks Poised to Beat Estimates

Here are some stocks which you may consider as our model shows that these have the right combination of elements to post an earnings beat in their upcoming releases:

Olympic Steel (ZEUS - Free Report) has an Earnings ESP of +6.64% and a Zacks Rank #1. The Zacks Consensus Estimate for the company’s revenues of $548 million for the first quarter of 2022 indicates year-over-year growth of 18.4%.

The Zacks Consensus Estimate for the company’s earnings for the first quarter of 2022 currently stands at $2.26, suggesting year-over-year improvement of 14.7%. ZEUS has a trailing four-quarter earnings surprise of 49.6%, on average.

Cigna (CI - Free Report) currently has an Earnings ESP of +6.26% and a Zacks Rank of 2. The Zacks Consensus Estimate for CI’s quarterly revenues stands at $43.6 billion, suggesting year-over-year growth of 6.3%.

The Zacks Consensus Estimate for Cigna’s first fiscal 2022 earnings is pegged at $5.13 per share, suggesting 8.5% growth from the year-ago quarter. CI has a trailing four-quarter earnings surprise of 6%, on average.

Performance Food Group (PFGC - Free Report) currently has an Earnings ESP of +10.17% and a Zacks Rank of 2. The Zacks Consensus Estimate for PFGC’s quarterly revenues is pegged at $13.11 billion, which indicates an increase of 9.6% from the prior-year quarter.

The Zacks Consensus Estimate for Performance Food Group’s first-quarter 2022 earnings has been stable in the past 30 days at 5 cents per share. The estimate projects a year-over-year growth of 168%. PFGC has a trailing four-quarter earnings surprise of 1.51%, on average.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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