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Arch Resources (ARCH) Q4 Earnings Lag Estimates on Lower Volumes
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Arch Resources (ARCH - Free Report) reported fourth-quarter 2023 operating earnings per share (EPS) of $6.07, which missed the Zacks Consensus Estimate of $6.90 by 12%. The bottom line also declined 73.81% from the year-ago quarter’s figure of $23.18.
Revenues
Total revenues were $774 million, which beat the Zacks Consensus Estimate of $654 million by 18.3%. However, the top line decreased 9.9% from $859 million in the year-ago quarter.
ARCH reported total revenues of $3.14 billion for 2023 compared with $3.72 billion in 2022, which reflects a year-over-year decline of 15.6%.
Arch Resources Inc. Price, Consensus and EPS Surprise
In the Metallurgical segment, ARCH sold 2.3 million tons of coal, which was on par with the prior-year quarter’s figure. Cash margins were $82.91 per ton compared with $93.15 in the year-ago quarter.
In the Thermal segment, the company sold 15.5 million tons of coal, down 3.7% from the prior-year quarter’s figure of 16.1 million tons. Cash margins were $1.64 per ton compared with $3.85 in the prior-year period.
Arch Resources used $3 million in the reported quarter to repurchase approximately 20,000 shares at an average price of $151.96 per share. As of Dec 31, 2023, ARCH has $217.7 million of remaining authorization under its existing $500-million share repurchase program.
Arch Resources continues to extend the market reach of its metallurgical segment, securing a total of six large, new Asian steelmaking customers during 2023. The company shipped nearly 40% of its total coking coal output into the Asian market during 2023 and expects the percentage to grow markedly in the years ahead.
Financial Highlights
Cash and cash equivalents were $287.8 million as of Dec 31, 2023 compared with $236.1 million as of Dec 31, 2022.
Long-term debt was $105.2 million as of Dec 31, 2023 compared with $116.3 million as of Dec 31, 2022.
Cash provided by operating activities for the year ended December 2023 was $635.3 million compared with $1.2 billion in the year-ago period.
Guidance
Arch Resources expects coking coal sales in the band of 8.6-9 million tons for 2024. The company projects a total thermal coal sales volume of 58.6-65 million tons.
ARCH expects corporate capital expenditure between $160 million and $170 million in 2024.
Warrior Met Coal (HCC - Free Report) reported fourth-quarter 2023 adjusted earnings of $2.49 per share, which lagged the Zacks Consensus Estimate of $3.16 by 21.2%.
The Zacks Consensus Estimate for HCC’s 2024 earnings stands at $9.43 per share, implying a year-over-year decline of 4.65%.
Alliance Resource Partners LP (ARLP - Free Report) reported fourth-quarter 2023 adjusted earnings of 88 cents per share, which lagged the Zacks Consensus Estimate of $1.14 by 22.8%.
The Zacks Consensus Estimate for ARLP’s 2024 earnings stands at $4.42 per share, implying a year-over-year decline of 8.11%.
Peabody Energy (BTU - Free Report) reported fourth-quarter 2023 adjusted earnings of $1.33 per share, which lagged the Zacks Consensus Estimate of $1.41 by 5.6%.
The Zacks Consensus Estimate for BTU’s 2024 earnings stands at $3.83 per share, implying a year-over-year decline of 23.40%.
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Arch Resources (ARCH) Q4 Earnings Lag Estimates on Lower Volumes
Arch Resources (ARCH - Free Report) reported fourth-quarter 2023 operating earnings per share (EPS) of $6.07, which missed the Zacks Consensus Estimate of $6.90 by 12%. The bottom line also declined 73.81% from the year-ago quarter’s figure of $23.18.
Revenues
Total revenues were $774 million, which beat the Zacks Consensus Estimate of $654 million by 18.3%. However, the top line decreased 9.9% from $859 million in the year-ago quarter.
ARCH reported total revenues of $3.14 billion for 2023 compared with $3.72 billion in 2022, which reflects a year-over-year decline of 15.6%.
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 2.3 million tons of coal, which was on par with the prior-year quarter’s figure. Cash margins were $82.91 per ton compared with $93.15 in the year-ago quarter.
In the Thermal segment, the company sold 15.5 million tons of coal, down 3.7% from the prior-year quarter’s figure of 16.1 million tons. Cash margins were $1.64 per ton compared with $3.85 in the prior-year period.
Arch Resources used $3 million in the reported quarter to repurchase approximately 20,000 shares at an average price of $151.96 per share. As of Dec 31, 2023, ARCH has $217.7 million of remaining authorization under its existing $500-million share repurchase program.
Arch Resources continues to extend the market reach of its metallurgical segment, securing a total of six large, new Asian steelmaking customers during 2023. The company shipped nearly 40% of its total coking coal output into the Asian market during 2023 and expects the percentage to grow markedly in the years ahead.
Financial Highlights
Cash and cash equivalents were $287.8 million as of Dec 31, 2023 compared with $236.1 million as of Dec 31, 2022.
Long-term debt was $105.2 million as of Dec 31, 2023 compared with $116.3 million as of Dec 31, 2022.
Cash provided by operating activities for the year ended December 2023 was $635.3 million compared with $1.2 billion in the year-ago period.
Guidance
Arch Resources expects coking coal sales in the band of 8.6-9 million tons for 2024. The company projects a total thermal coal sales volume of 58.6-65 million tons.
ARCH expects corporate capital expenditure between $160 million and $170 million in 2024.
Zacks Rank
Arch Resources currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Recent Releases
Warrior Met Coal (HCC - Free Report) reported fourth-quarter 2023 adjusted earnings of $2.49 per share, which lagged the Zacks Consensus Estimate of $3.16 by 21.2%.
The Zacks Consensus Estimate for HCC’s 2024 earnings stands at $9.43 per share, implying a year-over-year decline of 4.65%.
Alliance Resource Partners LP (ARLP - Free Report) reported fourth-quarter 2023 adjusted earnings of 88 cents per share, which lagged the Zacks Consensus Estimate of $1.14 by 22.8%.
The Zacks Consensus Estimate for ARLP’s 2024 earnings stands at $4.42 per share, implying a year-over-year decline of 8.11%.
Peabody Energy (BTU - Free Report) reported fourth-quarter 2023 adjusted earnings of $1.33 per share, which lagged the Zacks Consensus Estimate of $1.41 by 5.6%.
The Zacks Consensus Estimate for BTU’s 2024 earnings stands at $3.83 per share, implying a year-over-year decline of 23.40%.