We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Arch Resources (ARCH) Q1 Earnings Lag Estimates, Sales Beat
Read MoreHide Full Article
Arch Resources Inc. (ARCH - Free Report) reported first-quarter 2023 operating earnings per share (EPS) of $10.02, which missed the Zacks Consensus Estimate of $10.46 by 4.2%. The bottom line declined 22.3% from the year-ago quarter’s $12.89.
Revenues
Total revenues were $869.9 million, which beat the Zacks Consensus Estimate of $700 million by 24.3%. The top line improved 0.2% from $867.9 million in the year-ago quarter.
Arch Resources Inc. Price, Consensus and EPS Surprise
In the Metallurgical segment, ARCH sold 2.2 million tons of coal, up 46.7% from the prior-year quarter’s figure of 1.5 million tons. Cash margins were $121.59 per ton compared with $167.48 in the year-ago quarter.
In the Thermal segment, the company sold 17 million tons of coal, down 6.6% from the prior-year quarter’s figure of 18.2 million tons. Cash margins were $2.7 per ton compared with $5.42 in the prior-year period.
Arch Resources used $18.8 million in the reported quarter to repurchase 131,156 shares at an average price of $143.39 per share. The company also deployed $58.4 million to repurchase its remaining convertible securities, thereby reducing future dilution by 423,000 shares. As of Mar 31, 2023, ARCH had $322.4 million of remaining authorization under its existing $500-million share repurchase program.
Financial Highlights
Cash and cash equivalents were $189.7 million as of Mar 31, 2023 compared with $236.1 million as of Dec 31, 2022.
Long-term debt was $110.9 million as of Mar 31, 2023, compared with $116.3 million as of Dec 31, 2022.
Cash provided by operating activities for first three months of 2023 was $126.1 million compared with $292.9 million in the year-ago period.
Guidance
Arch Resources expects coking coal of 8.9-9.7 million tons for 2023. It also expects coking coal shipments to increase 10% in the second quarter of 2023, assuming continued solid rail and logistics performance. The company projects total thermal coal sales volume of 64-70 million tons.
Arch Resources’ expectation for corporate capital expenditure is pegged at $150-$160 million for 2023.
Consol Energy (CEIX - Free Report) is scheduled to report first-quarter results on May 2, before market open. The Zacks Consensus Estimate for earnings is pegged at $5.34 per share, indicating a year-over-year increase of 156.7%.
The same for 2023 EPS stands at $21.82, implying a year-over-year improvement of 66.9%. CEIX delivered an average earnings surprise of 23.6% in the last four quarters.
Alliance Resource Partners (ARLP - Free Report) is scheduled to report first-quarter results on May 2, before market open. The Zacks Consensus Estimate for earnings is pegged at $1.29 per unit, indicating a year-over-year increase of 360.7%.
The same for 2023 earnings per unit is pinned at $6.09, implying a year-over-year improvement of 38.72%.
SunCoke Energy (SXC - Free Report) is scheduled to report first-quarter results on May 4, before market open. The Zacks Consensus Estimate for first-quarter earnings is pegged at 19 cents per share, indicating a year-over-year increase of 37.5%.
The same for 2023 EPS is pinned at 76 cents. SXC delivered an average earnings surprise of 96.8% in the last four quarters.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Arch Resources (ARCH) Q1 Earnings Lag Estimates, Sales Beat
Arch Resources Inc. (ARCH - Free Report) reported first-quarter 2023 operating earnings per share (EPS) of $10.02, which missed the Zacks Consensus Estimate of $10.46 by 4.2%. The bottom line declined 22.3% from the year-ago quarter’s $12.89.
Revenues
Total revenues were $869.9 million, which beat the Zacks Consensus Estimate of $700 million by 24.3%. The top line improved 0.2% from $867.9 million in the year-ago quarter.
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 2.2 million tons of coal, up 46.7% from the prior-year quarter’s figure of 1.5 million tons. Cash margins were $121.59 per ton compared with $167.48 in the year-ago quarter.
In the Thermal segment, the company sold 17 million tons of coal, down 6.6% from the prior-year quarter’s figure of 18.2 million tons. Cash margins were $2.7 per ton compared with $5.42 in the prior-year period.
Arch Resources used $18.8 million in the reported quarter to repurchase 131,156 shares at an average price of $143.39 per share. The company also deployed $58.4 million to repurchase its remaining convertible securities, thereby reducing future dilution by 423,000 shares. As of Mar 31, 2023, ARCH had $322.4 million of remaining authorization under its existing $500-million share repurchase program.
Financial Highlights
Cash and cash equivalents were $189.7 million as of Mar 31, 2023 compared with $236.1 million as of Dec 31, 2022.
Long-term debt was $110.9 million as of Mar 31, 2023, compared with $116.3 million as of Dec 31, 2022.
Cash provided by operating activities for first three months of 2023 was $126.1 million compared with $292.9 million in the year-ago period.
Guidance
Arch Resources expects coking coal of 8.9-9.7 million tons for 2023. It also expects coking coal shipments to increase 10% in the second quarter of 2023, assuming continued solid rail and logistics performance. The company projects total thermal coal sales volume of 64-70 million tons.
Arch Resources’ expectation for corporate capital expenditure is pegged at $150-$160 million for 2023.
Zacks Rank
Arch Resources currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Releases
Consol Energy (CEIX - Free Report) is scheduled to report first-quarter results on May 2, before market open. The Zacks Consensus Estimate for earnings is pegged at $5.34 per share, indicating a year-over-year increase of 156.7%.
The same for 2023 EPS stands at $21.82, implying a year-over-year improvement of 66.9%. CEIX delivered an average earnings surprise of 23.6% in the last four quarters.
Alliance Resource Partners (ARLP - Free Report) is scheduled to report first-quarter results on May 2, before market open. The Zacks Consensus Estimate for earnings is pegged at $1.29 per unit, indicating a year-over-year increase of 360.7%.
The same for 2023 earnings per unit is pinned at $6.09, implying a year-over-year improvement of 38.72%.
SunCoke Energy (SXC - Free Report) is scheduled to report first-quarter results on May 4, before market open. The Zacks Consensus Estimate for first-quarter earnings is pegged at 19 cents per share, indicating a year-over-year increase of 37.5%.
The same for 2023 EPS is pinned at 76 cents. SXC delivered an average earnings surprise of 96.8% in the last four quarters.