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Alliance Resource (ARLP) Q4 Earnings & Sales Lag Estimates
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Alliance Resource Partners, L.P. (ARLP - Free Report) reported fourth-quarter 2018 operating earnings of 69 cents per unit, missing the Zacks Consensus Estimate of 74 cents by 6.8%.
Total Revenues
Total revenues in the reported quarter were $531.8 million, which lagged the Zacks Consensus Estimate of $533 million by 0.1%. However, the reported revenues reflect year-over-year growth of 10%.
The year-over-year improvement in the top line was on account of overall higher coal sales volume coupled with increased coal sales price per ton. Further, increased revenues from transportation aided its top-line growth.
Alliance Resource Partners, L.P. Price, Consensus and EPS Surprise
Illinois Basin: The segment reported total sales of $321.3 million, up 11.1% from the prior-year period. Sales volume of coal in the quarter under review went up 8% and price per ton of coal increased nearly 2.9% year over year.
Appalachia: The segment reported total sales of $158.9 million, down 2.5% from the prior-year period. Sales volume of coal in the quarter under review decreased 8.4% from the year-ago level. However, price per ton of coal was up nearly 6.5% year over year.
Operational Update
In the reported quarter, Alliance Resource’s total operating expenses were $482.6 million, up 19.2% year over year.
Interest expenses were $9.6 million, down 8.6% year over year.
Financial Highlights
Cash and cash equivalents as of Dec 31, 2018 were $244.1 million compared with $6.8 million at the end of 2017.
Long-term debt as of Dec 31, 2018 was $564 million compared with $415.9 million at the end of 2017.
Cash provided from operating activities in 2018 was $694.3 million compared with $556.1 million a year ago.
Guidance
Alliance Resource expects total 2019 production in the range of 43.5-45 million short tons. Cold weather across a large portion of the eastern United States is expected to increase coal burn as well as reduce utility stockpiles, and in turn boost coal demand in 2019.
Net income in 2019 is expected in the range of $505.5-$545.5 million and EBITDA is projected within $720-$760 million.
The company expects 2019 capital expenditure in the range of $360-$400 million.
CONSOL Coal Resources LP is expected to report fourth-quarter earnings on Feb 5. The Zacks Consensus Estimate for the partnership’s earnings is currently pegged at 48 cents per unit.
Warrior Met Coal Inc. (HCC - Free Report) is slated to report fourth-quarter earnings on Feb 21. The Zacks Consensus Estimate for the company’s earnings for the to-be-reported quarter is currently pegged at $2.03 per share.
SunCoke Energy, Inc. (SXC - Free Report) is expected to report fourth-quarter earnings on Jan 30. The Zacks Consensus Estimate for the company’s earnings is currently pegged at 5 cents per share.
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for the year?
Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.
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Alliance Resource (ARLP) Q4 Earnings & Sales Lag Estimates
Alliance Resource Partners, L.P. (ARLP - Free Report) reported fourth-quarter 2018 operating earnings of 69 cents per unit, missing the Zacks Consensus Estimate of 74 cents by 6.8%.
Total Revenues
Total revenues in the reported quarter were $531.8 million, which lagged the Zacks Consensus Estimate of $533 million by 0.1%. However, the reported revenues reflect year-over-year growth of 10%.
The year-over-year improvement in the top line was on account of overall higher coal sales volume coupled with increased coal sales price per ton. Further, increased revenues from transportation aided its top-line growth.
Alliance Resource Partners, L.P. Price, Consensus and EPS Surprise
Alliance Resource Partners, L.P. Price, Consensus and EPS Surprise | Alliance Resource Partners, L.P. Quote
Segmental Performance
Illinois Basin: The segment reported total sales of $321.3 million, up 11.1% from the prior-year period. Sales volume of coal in the quarter under review went up 8% and price per ton of coal increased nearly 2.9% year over year.
Appalachia: The segment reported total sales of $158.9 million, down 2.5% from the prior-year period. Sales volume of coal in the quarter under review decreased 8.4% from the year-ago level. However, price per ton of coal was up nearly 6.5% year over year.
Operational Update
In the reported quarter, Alliance Resource’s total operating expenses were $482.6 million, up 19.2% year over year.
Interest expenses were $9.6 million, down 8.6% year over year.
Financial Highlights
Cash and cash equivalents as of Dec 31, 2018 were $244.1 million compared with $6.8 million at the end of 2017.
Long-term debt as of Dec 31, 2018 was $564 million compared with $415.9 million at the end of 2017.
Cash provided from operating activities in 2018 was $694.3 million compared with $556.1 million a year ago.
Guidance
Alliance Resource expects total 2019 production in the range of 43.5-45 million short tons. Cold weather across a large portion of the eastern United States is expected to increase coal burn as well as reduce utility stockpiles, and in turn boost coal demand in 2019.
Net income in 2019 is expected in the range of $505.5-$545.5 million and EBITDA is projected within $720-$760 million.
The company expects 2019 capital expenditure in the range of $360-$400 million.
Zacks Rank
Alliance Resource currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Releases
CONSOL Coal Resources LP is expected to report fourth-quarter earnings on Feb 5. The Zacks Consensus Estimate for the partnership’s earnings is currently pegged at 48 cents per unit.
Warrior Met Coal Inc. (HCC - Free Report) is slated to report fourth-quarter earnings on Feb 21. The Zacks Consensus Estimate for the company’s earnings for the to-be-reported quarter is currently pegged at $2.03 per share.
SunCoke Energy, Inc. (SXC - Free Report) is expected to report fourth-quarter earnings on Jan 30. The Zacks Consensus Estimate for the company’s earnings is currently pegged at 5 cents per share.
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for the year?
Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.
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