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Arch Resources (ARCH) to Post Q2 Earnings: What's in Store ?

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Arch Resources (ARCH - Free Report) is slated to release second-quarter 2022 results on Jul 28, before market open. ARCH delivered an earnings surprise of 32.1% in the last reported quarter.

Let’s see how things have shaped up before the upcoming earnings announcement.

Factors to Consider

Arch Resources’ second-quarter earnings are likely to have benefited from high-quality metallurgical coal production from the Leer South mine. Reduction of debts in the first quarter has lowered capital servicing costs of the company and is likely to have a positive impact on margins and earnings.

The strong coking coal prices are also going to have a positive impact on second-quarter earnings. However, inflationary pressures might impact earnings in the second quarter.

Expectations

The Zacks Consensus Estimate for Arch Resources’ second-quarter earnings is pegged at $21.86 per share, which indicates 1,216.9% growth from the year-ago reported figure.

The Zacks Consensus Estimate for second-quarter sales stands at $995 million, suggesting growth of 120.9% from the year-ago reported figure.

What Our Quantitative Model Predicts

Our proven model does not conclusively predict an earnings beat for Arch 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 chances of an earnings beat, which is not the case here as you will see below.

Arch Resources Inc. Price and EPS Surprise

Arch Resources Inc. Price and EPS Surprise

Arch Resources Inc. price-eps-surprise | Arch Resources Inc. Quote

Earnings ESP: Arch Resources has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Currently, Arch Resources carries a Zacks Rank #2.

You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks to Consider

Investors can consider the following players from the same sector that have the right combination of elements to beat on earnings this reporting cycle.

Range Resources Corporation (RRC - Free Report) is set to release second-quarter 2022 results on Jul 25. RRC has an Earnings ESP of +11.56% and sports a Zacks Rank #1.

The Zacks Consensus Estimate for 2022 earnings of Range Resources is $5.06 per share, which indicates growth of 150.5% from the prior-year period.

TotalEnergies (TTE - Free Report) is set to release second-quarter 2022 results on Jul 28. TTE has an Earnings ESP of +4.67% and a Zacks Rank #2.

The Zacks Consensus Estimate for 2022 earnings of TotalEnergies is $13.01 per share which indicates a 94.76% surge from the prior-year period.

Devon Energy Corporation (DVN - Free Report) is set to release second-quarter 2022 results on Aug 1.  DVN has an Earnings ESP of +8.14% and a Zacks Rank #2.

The Zacks Consensus Estimate for 2022 earnings of Devon Energy is $9.04 per share, which indicates 156.1% growth from the year-ago period.

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

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