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Cloud Peak Energy (CLD) Q2 Loss in Line, Revenues Miss Mark

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Coal producer, Cloud Peak Energy (CLD - Free Report) reported a loss of 4 cents per share in the second quarter of 2017, in line with the Zacks Consensus Estimate.

Revenue

Cloud Peak Energy’s quarterly revenues of $229.2 million increased approximately 31.6% year over year from $174.2 million. However, the top line lagged the Zacks Consensus Estimate of $237.7 million by 3.6%.

Cloud Peak Energy Inc Price, Consensus and EPS Surprise

 

Cloud Peak Energy Inc Price, Consensus and EPS Surprise | Cloud Peak Energy Inc Quote

Segment Performance

Owned and Operated Mines

In the quarter, the company sold 14.3 million tons of coal compared with 11.8 million tons in the year-ago quarter. Realized price per ton of coal during the quarter was $12.25, down nearly 2.8% year over year. Revenues from this segment were $ 178.7 million, reflecting an increase of 17.5% from $152.1 million in the year-ago quarter, primarily due to higher shipments.

Logistics and Related Activities

Total tons delivered during the quarter were 1.3 million, up from 0.1 million tons in the prior-year quarter. Revenues from this segment increased to $ 66.0 million, reflecting a surge of 1962.5% from $3.2 million in the year-ago quarter.

Highlight of the Release    

Total costs and expenses in the reported quarter were $226.7 million, witnessing an increase of 76.7% from $128.3 million in the year-ago quarter. This was primarily due to an increase in the cost of product sold.

The average cost of coal sold during the quarter was $9.72 per ton, down from $10.50 in the second quarter of 2016. The cash margin of per ton coal sold in the quarter improved 20.5% to $2.53 from $2.10 in the year-ago quarter due to the company’s cost-control initiatives.

Financial Update

As of Jun 30, the company’s cash and cash equivalents were $80.5 million, down from $83.7 million as of Dec 31, 2016.

Senior notes as of Jun 30, were $409.4 million, lower than $475 million as of Dec 31, 2016.

Cash provided (used) in operating activities in first half of 2017 was $12.5 million compared with ($12.2) million in the prior-year quarter.

Capital expenditure for the quarter was $3.8 million, lower than the year-ago level of $4.5 million.

Guidance

Cloud Peak Energy expects coal shipment in 2017 from three mines in the range of 56−59 million tons. Out of the expected shipments, nearly 56 million tons are committed with a fixed price of $12.18 per ton.

Capital expenditures for the full year are expected in the range of $20–$25 million.

Upcoming Peer Releases

Natural Resource Partners LP (NRP - Free Report) is expected to release second-quarter 2017 earnings on Aug 8. The Zacks Consensus Estimate for the quarter's earnings is pegged at $1.38.

Alliance Resource Partners, L.P. (ARLP - Free Report) is expected to release second-quarter 2017 earnings on Jul 31. The Zacks Consensus Estimate for the quarter is pegged at 80 cents.

Zacks Rank & Key Pick

Cloud Peak has a Zacks Rank #4 (Sell). A better-ranked stock in the same space is CNX Coal Resources LP (CNXC - Free Report) , carrying a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

CNX Coal Resources is expected to release second-quarter 2017 earnings on Jul 31. The Zacks Consensus Estimate for earnings of 51 cents per share remained  same over the last 30 days.

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