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Arch Coal (ARCH) Beats Earnings & Revenue Estimates in Q3

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Arch Coal Inc (ARCH - Free Report) delivered third-quarter 2018 operating earnings of $6.33 per share, which beat the Zacks Consensus Estimate of $3.02 by 109.6%. The bottom line improved 146.3% on a year-over-year basis.

Total Revenues

Total revenues in the reported quarter were $633.2 million, which beat the Zacks Consensus Estimate of $564.3 million by 12.2%. Quarterly revenues improved 3.2% on a year-over-year basis.

Arch Coal Inc. Price, Consensus and EPS Surprise

 

 

Segment Details

In the Metallurgical segment, the company sold 1.9 million tons of coal compared with 2.2 million tons in the prior-year quarter. The company recorded cash margins of $42.21 per ton compared with $24.14 in the year-ago quarter, owing to higher per ton selling price of metallurgical coal.

During the quarter, Powder River Basin segment’s cash margin per ton inched up 0.9% year over year. The company sold 21.5 million tons, down from 21.7 million tons in the year-ago quarter.

In the Other Thermal segment the company posted a cash margin of $9.28 per ton compared with $9.03 per ton in the year-ago quarter.

Financial Highlights

Cash and cash equivalents as of Sep 30, 2018, were $245.7 million compared with $273.4 million at the end of 2017.

Long-term debt as of Sep 30, 2018 was $302.8 million compared with $310.1 million at the end of 2017.

Cash provided from operating activities at the end of nine months of 2018 was $226.5 million compared with $157.1 million in the year-ago period.

Arch Coal returned $84 million to shareholders through repurchases and approved the next quarterly cash dividend payment of 40 cents per common share, scheduled to be paid on Dec14, 2018 to stockholders of record at the end of  Nov 30, 2018.

Guidance

Arch Coal raised thermal coal sales volumes guidance for 2018 within 83-87 million tons and reaffirmed coking coal in the range of 6.3-6.7million tons.

Zacks Rank

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

Upcoming Coal Releases

Warrior Met Coal In. (HCC - Free Report) is expected to release third-quarter 2018 results on Oct 31. The Zacks Consensus Estimate for earnings is pegged at $1.21.

Peabody Energy Corp (BTU - Free Report) is expected to release third-quarter 2018 results on Oct 30. The Zacks Consensus Estimate for earnings is pegged at $1.27.

CONSOL Coal Resources LP is expected to release third-quarter 2018 results on Oct 29. The Zacks Consensus Estimate for earnings is pegged at 31 cents.

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