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Arch Resources (ARCH) Q2 Earnings Lag Estimates, Revenues Beat

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Arch Resources Inc. (ARCH - Free Report) has reported second-quarter 2022 operating earnings per share (EPS) of $19.30, which lagged the Zacks Consensus Estimate of $21.86 by 11.7%. Arch Resources' earnings improved a whopping 1,062% year over year.

Revenues

Total revenues were $1,133.4 million, beating the Zacks Consensus Estimate of $995 million by 13.9%. The top line improved 151.6% from $450.4 million in the year-ago quarter.

Arch Resources Inc. Price, Consensus and EPS Surprise

 

Arch Resources Inc. Price, Consensus and EPS Surprise

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

Highlights of the Release

In the Metallurgical segment, ARCH sold 2.1 million tons of coal, up 16.6% from the prior-year figure of 1.8 million tons. It recorded cash margins worth $187.45 per ton compared with $30.34 in the year-ago quarter primarily due to a higher sales price.

In the Thermal segment, the company sold 17.8 million tons of coal, up 17.1% from the prior-year figure of 15.2 million tons. It recorded a cash margin of $5.14 per ton compared with $2.62 in the prior-year period.

Arch Resources repaid $135.8 million of its outstanding indebtedness in the second quarter, reducing its total debt outstanding to $187 million.

Financial Highlights

Cash and cash equivalents as of Jun 30, 2022, were $281.9 million compared with $325.2 million as of Dec 31, 2021.

Long-term debt as of Jun 30, 2022, was $127.1 million compared with $337.6 million as of Dec 31, 2021.

Cash provided by operating activities in the first six months of 2022 was $561.2 million compared with $26.1 million in the year-ago period.

Guidance

Arch Resources received a commitment for 6.5 million tons of coking coal volume for 2022. The total thermal coal committed for 2022 is 75.3 million tons. ARCH expects a total sales volume of 81.2-85.6 million tons for 2022.

Arch Resources’ 2022 capital expenditure is projected to be $150-$160 million.

The company’s board of directors has increased the share repurchase program to $500 million.

Zacks Rank

Arch Resources currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Upcoming Releases

Peabody Energy Corporation (BTU - Free Report) is scheduled to announce second-quarter 2022 results on Jul 28. The Zacks Consensus Estimate for earnings per share is pegged at $3.05.

Peabody Energy reported an average surprise of 62.1% in the last four quarters. The Zacks Consensus Estimate for 2022 earnings per share indicates year-over-year growth of 190.3%.

CONSOL Energy Inc. (CEIX - Free Report) is scheduled to announce second-quarter 2022 results on Aug 4. The Zacks Consensus Estimate for earnings per share is pegged at $1.83.

CONSOL Energy reported an average surprise of 34.9% in the last four quarters. The Zacks Consensus Estimate for 2022 earnings per share indicates year-over-year growth of 169.9%.

Warrior Met Coal, Inc. (HCC - Free Report) is scheduled to announce second-quarter 2022 results on Aug 3. The Zacks Consensus Estimate for earnings per share is pegged at $5.59.

Warrior Met Coal reported an average surprise of 106.8% in the last four quarters. The Zacks Consensus Estimate for 2022 earnings per share indicates year-over-year growth of 285.7%.

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