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Arch Resources' (ARCH) Q4 Earnings and Revenues Beat Estimates
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Arch Resources Inc. (ARCH - Free Report) reported fourth-quarter 2022 operating earnings per share (EPS) of $23.18, which surpassed the Zacks Consensus Estimate of $10.90 by 112.6%. The bottom line also improved 75.7% from the year-ago quarter’s $13.19.
For 2022, ARCH reported EPS of $63.88, up 212.1% from $20.47 in 2021.
Revenues
Total revenues for the fourth quarter were $859.5 million, beating the Zacks Consensus Estimate of $721 million by 19.2%. The top line improved 6.6% from $806 million in the year-ago quarter.
Total revenues for 2022 were $37.2 billion, up 68.3% from the year-ago figure of $22.1 billion.
Arch Resources Inc. Price, Consensus and EPS Surprise
Leer South mine came out with improved production volumes during the quarter as the longwall advanced into progressively more advantageous geological conditions. ARCH’s core Metallurgical segment reported a 15% sequential improvement in the production level.
In this segment, ARCH sold 2.3 million tons of coal, up 15% from the prior-year figure of 2 million tons. It recorded cash margins worth $93.15 per ton compared with $111.88 in the year-ago quarter.
In the Thermal segment, the company sold 16.1 million tons of coal, down 14.4% from the prior-year figure of 18.8 million tons. It recorded cash margin of $3.85 per ton compared with $3.57 in the prior-year period.
In the fourth quarter, Arch Resources invested $101.3 million in repurchasing 689,593 shares at an average price of $146.89 per share. The company also deployed $58.9 million to repurchase convertible debt securities with an aggregate principal amount of $12 million, thus reducing future dilution by 377,937 shares. As of Dec 31, 2022, Arch Resources had $341.2 million of remaining authorization under its existing $500 million share repurchase program.
Financial Highlights
Cash and cash equivalents as of Dec 31, 2022 were $236.1 million compared with $325.2 million as of Dec 31, 2021.
Long-term debt as of Dec 31, 2022 was $116.3 million compared with $337.6 million as of Dec 31, 2021.
Cash provided by operating activities in 2022 was $1,209.5 million compared with $238.3 million in the year-ago period.
Guidance
In 2023, Arch Resources’ expectation for coking coal is in the range of 8.9 to 9.7 million tons. The total thermal coal expectation for 2023 is in the range of 66 to 74 million tons.
Arch Resources’ expectation for 2023 corporate capital expenditure is in the range of $150-$160 million.
Permian Resources Corporation (PR - Free Report) is scheduled to report fourth-quarter results on Feb 22, after market close. The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 49 cents per share, indicating a year-over-year increase of 25.64%.
The Zacks Consensus Estimate for 2023 EPS is $2.23, implying a year-over-year increase of 32%. PR delivered an average earnings surprise of 16.7% in the last four quarters.
Denbury is scheduled to report fourth-quarter results on Feb 23, before market open. The Zacks Consensus Estimate for fourth-quarter earnings is pegged at $1.61 per share, indicating a year-over-year increase of 111.84%.
The Zacks Consensus Estimate for 2023 EPS is $8.01, implying a year-over-year increase of 15.04%. DEN delivered an average earnings surprise of 7.14% in the last four quarters.
Evergy Inc. (EVRG - Free Report) is scheduled to report fourth-quarter results on Feb 24, before market open. The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 22 cents per share, indicating a year-over-year increase of 37.5%.
EVRG’s long-term (three to five years) earnings growth is currently pegged at 5.3%. The Zacks Consensus Estimate for 2023 EPS is $3.65, implying a year-over-year increase of 1.11%.
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Arch Resources' (ARCH) Q4 Earnings and Revenues Beat Estimates
Arch Resources Inc. (ARCH - Free Report) reported fourth-quarter 2022 operating earnings per share (EPS) of $23.18, which surpassed the Zacks Consensus Estimate of $10.90 by 112.6%. The bottom line also improved 75.7% from the year-ago quarter’s $13.19.
For 2022, ARCH reported EPS of $63.88, up 212.1% from $20.47 in 2021.
Revenues
Total revenues for the fourth quarter were $859.5 million, beating the Zacks Consensus Estimate of $721 million by 19.2%. The top line improved 6.6% from $806 million in the year-ago quarter.
Total revenues for 2022 were $37.2 billion, up 68.3% from the year-ago figure of $22.1 billion.
Arch Resources Inc. Price, Consensus and EPS Surprise
Arch Resources Inc. price-consensus-eps-surprise-chart | Arch Resources Inc. Quote
Highlights of the Release
Leer South mine came out with improved production volumes during the quarter as the longwall advanced into progressively more advantageous geological conditions. ARCH’s core Metallurgical segment reported a 15% sequential improvement in the production level.
In this segment, ARCH sold 2.3 million tons of coal, up 15% from the prior-year figure of 2 million tons. It recorded cash margins worth $93.15 per ton compared with $111.88 in the year-ago quarter.
In the Thermal segment, the company sold 16.1 million tons of coal, down 14.4% from the prior-year figure of 18.8 million tons. It recorded cash margin of $3.85 per ton compared with $3.57 in the prior-year period.
In the fourth quarter, Arch Resources invested $101.3 million in repurchasing 689,593 shares at an average price of $146.89 per share. The company also deployed $58.9 million to repurchase convertible debt securities with an aggregate principal amount of $12 million, thus reducing future dilution by 377,937 shares. As of Dec 31, 2022, Arch Resources had $341.2 million of remaining authorization under its existing $500 million share repurchase program.
Financial Highlights
Cash and cash equivalents as of Dec 31, 2022 were $236.1 million compared with $325.2 million as of Dec 31, 2021.
Long-term debt as of Dec 31, 2022 was $116.3 million compared with $337.6 million as of Dec 31, 2021.
Cash provided by operating activities in 2022 was $1,209.5 million compared with $238.3 million in the year-ago period.
Guidance
In 2023, Arch Resources’ expectation for coking coal is in the range of 8.9 to 9.7 million tons. The total thermal coal expectation for 2023 is in the range of 66 to 74 million tons.
Arch Resources’ expectation for 2023 corporate capital expenditure is in the range of $150-$160 million.
Zacks Rank
Arch Resources currently has a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Upcoming Releases
Permian Resources Corporation (PR - Free Report) is scheduled to report fourth-quarter results on Feb 22, after market close. The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 49 cents per share, indicating a year-over-year increase of 25.64%.
The Zacks Consensus Estimate for 2023 EPS is $2.23, implying a year-over-year increase of 32%. PR delivered an average earnings surprise of 16.7% in the last four quarters.
Denbury is scheduled to report fourth-quarter results on Feb 23, before market open. The Zacks Consensus Estimate for fourth-quarter earnings is pegged at $1.61 per share, indicating a year-over-year increase of 111.84%.
The Zacks Consensus Estimate for 2023 EPS is $8.01, implying a year-over-year increase of 15.04%. DEN delivered an average earnings surprise of 7.14% in the last four quarters.
Evergy Inc. (EVRG - Free Report) is scheduled to report fourth-quarter results on Feb 24, before market open. The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 22 cents per share, indicating a year-over-year increase of 37.5%.
EVRG’s long-term (three to five years) earnings growth is currently pegged at 5.3%. The Zacks Consensus Estimate for 2023 EPS is $3.65, implying a year-over-year increase of 1.11%.