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Peabody Energy (BTU) to Report Q2 Earnings: What's in Store?

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Peabody Energy Corporation (BTU - Free Report) is scheduled to release second-quarter 2022 results on Jul 28. BTU delivered a negative earnings surprise of 30.09% in the last reported quarter.

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

Factors to Consider

Peabody Energy’s second-quarter earnings are likely to have benefited from higher realized prices of coal from its seaborne coal segments and higher margins and volumes from the Other U.S. Thermal segment. Peabody is also likely to have benefited from strong demand of coal. The debt reduction initiative will reduce capital servicing costs and boost margins in the second quarter.

The second-quarter performance of Peabody Energy is likely to have been impacted by adverse weather conditions in Australia, degradation of rail transportation in Powder River Basin region, increase in diesel prices and production taxes.

Expectations

The Zacks Consensus Estimate for Peabody Energy’s second-quarter earnings is pegged at $3.05 per share, which indicates 971.4% growth from the year-ago reported figure. Peabody Energy expects second-quarter net income in the range of $400 to $420 million.

The Zacks Consensus Estimate for second-quarter sales stands at $1.33 billion, suggesting growth of 83.3% from the year-ago reported figure. Peabody Energy expects second-quarter revenues in the range of $1,310 to $1,340 million.

What Our Quantitative Model Predicts

Our proven model does not conclusively predict an earnings beat for Peabody Energy 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.

Peabody Energy Corporation Price and EPS Surprise

Peabody Energy Corporation Price and EPS Surprise

Peabody Energy Corporation price-eps-surprise | Peabody Energy Corporation Quote

Earnings ESP: Peabody Energy 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, Peabody Energy has 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. AR has an Earnings ESP of +9.47% and sports a Zacks Rank #1.

The Zacks Consensus Estimate for second-quarter 2022 earnings of Range Resources is $1.22 per share, which indicates growth of 408.3% from the prior-year quarter.

Devon Energy Corporation (DVN - Free Report) is set to release second-quarter 2022 results on Aug 1. DVN has an Earnings ESP of +4.9% and a Zacks Rank #2.

The Zacks Consensus Estimate for second-quarter 2022 earnings of Devon Energy is $2.34 per share, which indicates growth of 290% from the year-ago quarter.

Continental Resources, Inc. (CLR - Free Report) is set to release second-quarter 2022 results on Jul 28. CLR has an Earnings ESP of +1.48% and a Zacks Rank #2.

The Zacks Consensus Estimate for second-quarter 2022 earnings of Continental Resources is $3.11 per share, which indicates growth of 241.8% from the prior-year period.

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