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Cloud Peak Energy (CLD) Q3 Earnings Beat, Revenues Miss

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Cloud Peak Energy’s reported earnings of 16 cents per share in third-quarter 2018, surpassing the Zacks Consensus Estimate of a loss of 8 cents, by 300%. Also, the bottom line skyrocketed 433.3% compared with 3 cents per share in the prior-year quarter.

Revenues

Revenues totaled $233.1 million and missed the Zacks Consensus Estimate of $244 million by 4.5%. Moreover, the top line declined 6.4% from $248.9 million in the year-ago period. This downside is due to the lower shipment in the Owned and Operated Mines segment.

Cloud Peak Energy Inc Price, Consensus and EPS Surprise

Segment Performance

Owned and Operated Mines

In the third quarter, the company sold 13.1 million tons of coal compared with 15.5 million tons in the year-earlier quarter. Realized price per ton of coal during the quarter was $12.16, slipping nearly 1.3% year over year. Revenues in this segment were $162 million, down 18.2% from $198 million a year ago. The downtrend was caused by lower shipments as well as per ton lower average realized prices.

Logistics and Related Activities

Total tons delivered were 1.5 million, up from the year-ago quarter’s figure of 1.4 million. Revenues in this segment amounted to $91 million, up 34.4% from $67.7 million in the comparable quarter last year. Strong Asian utility demand and current pricing drove the company’s export as well as boosted its revenues.

Highlights of the Release    

Total costs and expenses were $232.4 million, down 2.6% from $238.6 million in the year-ago quarter. This was primarily due to lower depreciation and depletion charges as well as lower selling, general and administration cost.

Financial Update

As of Sep 30, 2018, the company’s cash and cash equivalents were $109.5 million, up from $107.9 million as of Dec 31, 2017.

Senior notes were $401.9 million, down from $405.3 million as of Dec 31, 2017.

Cash provided during the nine-month period of 2018 in operating activities was $24.1 million compared with $57 million in the year-ago quarter.

Guidance

The expected shipments for 2018 are 52 million tons committed with a fixed price of $12.20 per ton.

Capital expenditures for 2018 are projected in the range of $13-$15 million.

Upcoming Releases

Peabody Energy Corp (BTU - Free Report) is anticipated to release third-quarter 2018 results on Oct 30. The Zacks Consensus Estimate for earnings is pegged at $1.29.

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

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

Zacks Rank

Cloud Peak has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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