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Will Arch Coal (ARCH) Deliver a Beat This Earnings Season?
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We expect Arch Coal Inc. (ARCH - Free Report) to beat second quarter earnings estimates when it reports second-quarter 2018 results on Jul 31. In first-quarter 2018, the company came up with a negative earnings surprise of 26.25%.
What Our Quantitative Model Predicts
Our proven model conclusively shows that Arch Coal is likely to beat on earnings this earnings season. This is because the stock has both a positive Earnings ESP and a favorable Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen.
Earnings ESP: Arch Coal has an Earnings ESP of +1.64%. This is because the Most Accurate Estimate stands at $2.21 per share higher than the Zacks Consensus Estimate of $2.18 per share. A positive ESP indicates a possible earnings surprise.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Arch Coal carries a Zacks Rank #3, which increases the predictive power of ESP. Thus, the combination of a solid Zacks Rank with a positive ESP makes us reasonably confident about likely earnings beat this reporting cycle.
Conversely, the Sell-rated stocks (#4 or 5) should never be considered going into the earnings announcement, especially when the company is seeing negative estimate revisions.
The Zacks Consensus Estimate for second-quarter 2018 earnings is projected at $2.18 per share, reflecting 17.8% growth compared with the same period last year. Also, lower number of outstanding shares on account of share repurchase plan of the company will likely have a positive impact on the company's earnings.
The company is committed to a shipment of nearly 270,000 tons at a fixed price of $125 per ton and a vast majority of this fixed price volumes were likely to be shipped in second-quarter 2018, which is expected to drive the bottom line of the company in the upcoming quarterly results.
The company is a low-cost producer of high quality metallurgical coal and rising demand of met coal in the global market is going to have very impact on the performance.
However, on account of normal seasonality of Powder River Basin shipments, the company expects the second quarter to be the lowest shipping quarter, and the highest-cost period of the year, which could offset gains.
Other Stocks to Consider
Here are a few other players worth considering from the Zacks Oil and Energy sector with the right combination of elements to also beat estimates this time around.
Murphy Oil Corporation (MUR - Free Report) has an Earnings ESP of +5.99% and is a Zacks 2 Ranked stock. The company is expected to report second-quarter 2018 results on Aug 8.
Occidental Petroleum Corporation (OXY - Free Report) is expected to report second-quarter 2018 results on Aug 8. The company has an Earnings ESP of +1.75% and a Zacks Rank 2.
5 Medical Stocks to Buy Now
Zacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia, AIDS, muscular dystrophy, hemophilia, and other conditions.
New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.
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Will Arch Coal (ARCH) Deliver a Beat This Earnings Season?
We expect Arch Coal Inc. (ARCH - Free Report) to beat second quarter earnings estimates when it reports second-quarter 2018 results on Jul 31. In first-quarter 2018, the company came up with a negative earnings surprise of 26.25%.
What Our Quantitative Model Predicts
Our proven model conclusively shows that Arch Coal is likely to beat on earnings this earnings season. This is because the stock has both a positive Earnings ESP and a favorable Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen.
Earnings ESP: Arch Coal has an Earnings ESP of +1.64%. This is because the Most Accurate Estimate stands at $2.21 per share higher than the Zacks Consensus Estimate of $2.18 per share. A positive ESP indicates a possible earnings surprise.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Arch Coal carries a Zacks Rank #3, which increases the predictive power of ESP. Thus, the combination of a solid Zacks Rank with a positive ESP makes us reasonably confident about likely earnings beat this reporting cycle.
Conversely, the Sell-rated stocks (#4 or 5) should never be considered going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Arch Coal Inc. Price and EPS Surprise
Arch Coal Inc. Price and EPS Surprise | Arch Coal Inc. Quote
Factors to Consider
The Zacks Consensus Estimate for second-quarter 2018 earnings is projected at $2.18 per share, reflecting 17.8% growth compared with the same period last year. Also, lower number of outstanding shares on account of share repurchase plan of the company will likely have a positive impact on the company's earnings.
The company is committed to a shipment of nearly 270,000 tons at a fixed price of $125 per ton and a vast majority of this fixed price volumes were likely to be shipped in second-quarter 2018, which is expected to drive the bottom line of the company in the upcoming quarterly results.
The company is a low-cost producer of high quality metallurgical coal and rising demand of met coal in the global market is going to have very impact on the performance.
However, on account of normal seasonality of Powder River Basin shipments, the company expects the second quarter to be the lowest shipping quarter, and the highest-cost period of the year, which could offset gains.
Other Stocks to Consider
Here are a few other players worth considering from the Zacks Oil and Energy sector with the right combination of elements to also beat estimates this time around.
Warrior Met Coal Inc. (HCC - Free Report) has an Earnings ESP of +3.17% and a Zacks Rank of 2. The company is expected to report second-quarter 2018 results on Aug 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Murphy Oil Corporation (MUR - Free Report) has an Earnings ESP of +5.99% and is a Zacks 2 Ranked stock. The company is expected to report second-quarter 2018 results on Aug 8.
Occidental Petroleum Corporation (OXY - Free Report) is expected to report second-quarter 2018 results on Aug 8. The company has an Earnings ESP of +1.75% and a Zacks Rank 2.
5 Medical Stocks to Buy Now
Zacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia, AIDS, muscular dystrophy, hemophilia, and other conditions.
New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.
Click here to see the 5 stocks >>