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Arch Resources Q3 Earnings Lag Estimates, Revenues Beat

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Arch Resources, Inc. (ARCH - Free Report) reported third-quarter 2024 earnings per share (EPS) of 41 cents, which missed the Zacks Consensus Estimate of $1.38 by 70.3%. The bottom line declined from the year-ago level of $3.91.

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Revenues of ARCH

Total revenues were $617.9 million, which beat the Zacks Consensus Estimate of $536 million by 15.3%. However, the top line decreased 17% from $744.6 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

ARCH’s Segmental Details

In the Metallurgical segment, ARCH sold 2.4 million tons of coal, up 4.3% from the prior-year figure. Cash margins were $21.74 per ton compared with $54.7 in the year-ago quarter.

In the Thermal segment, the company sold 13.8 million tons of coal, down 17.9% from the prior-year figure. Cash margins were 86 cents per ton compared with $1.34 in the prior-year period.

Highlights of ARCH’s Earnings Release

During the third quarter, Arch Resources managed through a three-week outage of the ship loader at Curtis Bay Terminal that reduced coking coal shipments by an estimated 200,000 tons.

The company paid down $5.1 million in debt and ended the third quarter with a net cash position of $127.7 million.

ARCH announced plans to merge with CONSOL Energy Inc. to form a leading global player in seaborne metallurgical and high-rank thermal coal markets. The merger is expected to unlock additional value creation from $110 million to $140 million of annual cost savings and synergies. The merger is expected to be closed by the end of the first quarter of 2025. Completion of the merger is subject to the satisfaction of the remaining customary closing conditions, including approval by the companies' stockholders.

ARCH’s Financial Highlights

Cash and cash equivalents and short-term investments totaled $219.6 million as of Sept. 30, 2024, compared with $287.8 million as of Dec 31, 2023.

Cash provided by operating activities in the first nine months of 2024 was $212.4 million compared with $453.8 million in the year-ago period.

ARCH’s Zacks Rank

Arch Resources currently carries a Zacks Rank #5 (Strong Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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