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Peabody Energy (BTU) Q3 Earnings Lag, Revenues Beat Estimates
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Peabody Energy (BTU - Free Report) incurred third-quarter 2019 loss of 57 cents per share, which is wider than the Zacks Consensus Estimate of a loss of 41 cents. However, the company reported earnings of 63 cents in the year-ago quarter.
Revenues
Quarterly revenues of $1.11 billion surpassed the Zacks Consensus Estimate of $1.09 billion by 1.8%. However, the top line declined 21.3% from $1.41 billion recorded in the year-ago quarter. Revenues during the quarter were impacted by 36% low seaborne metallurgical coal sales volumes and nearly $90 million in pricing decline, excluding higher Kayenta revenues.
Peabody Energy Corporation Price, Consensus and EPS Surprise
Peabody’s total sales volume was 44.8 million tons, down 8.76% from 49.1 million tons registered in the year-ago quarter. Sales volume during the quarter was impacted by a 7.9% year-over-year decline in Total U.S. Thermal Mining Operations.
Operating costs and expenses declined 13.5% to $906.2 million from $1,047.9 million in the prior-year quarter.
Revenues per U.S. thermal ton fell 3.1% year over year to $17.62. Moreover, cost per ton declined 5.7% to $13.54 as a result of a new organizational model. Peabody is consistently undertaking initiatives to adjust to difficult industry conditions through utilizing mine plans, moving contracts, reducing operations and synchronising its workforce according to customer demand.
Financial Update
As of Sep 30, 2019, cash and cash equivalents amounted to $759.1 million compared with $981.9 million on Dec 31, 2018.
Long-term debt of the company was $1,329.4 million as of Sep 30, 2019, down from $1,330.5 million on Dec 31, 2018.
During the quarter, Cash flow from operating activities amounted to $175.6 million compared with $345.4 million in the year-ago quarter.
Peabody repurchased $144.2 million stock in the third quarter.
Guidance
For 2019, Peabody expects sales volume from the Power River Basin in the range of 107-113 million short tons. It also anticipates exporting metallurgical coal in the range of 8.5-9 million short tons.
Also, the company projects 2019 capital expenditure in the range of $300-$325 million and interest expenses to be nearly $145 million.
Alliance Resource Partners (ARLP - Free Report) delivered third-quarter 2019 earnings of 39 cents per share, which missed the Zacks Consensus Estimate of 46 cents by 15.2%.
Enterprise Products Partners (EPD - Free Report) delivered third-quarter 2019 earnings of 50 cents per share, which lagged the Zacks Consensus Estimate of 53 cents by 5.66%.
First Solar (FSLR - Free Report) delivered third-quarter 2019 earnings of $1.06 per share, which missed the Zacks Consensus Estimate of 29 cents by 72.64%.
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Peabody Energy (BTU) Q3 Earnings Lag, Revenues Beat Estimates
Peabody Energy (BTU - Free Report) incurred third-quarter 2019 loss of 57 cents per share, which is wider than the Zacks Consensus Estimate of a loss of 41 cents. However, the company reported earnings of 63 cents in the year-ago quarter.
Revenues
Quarterly revenues of $1.11 billion surpassed the Zacks Consensus Estimate of $1.09 billion by 1.8%. However, the top line declined 21.3% from $1.41 billion recorded in the year-ago quarter. Revenues during the quarter were impacted by 36% low seaborne metallurgical coal sales volumes and nearly $90 million in pricing decline, excluding higher Kayenta revenues.
Peabody Energy Corporation Price, Consensus and EPS Surprise
Peabody Energy Corporation price-consensus-eps-surprise-chart | Peabody Energy Corporation Quote
Quarterly Highlights
Peabody’s total sales volume was 44.8 million tons, down 8.76% from 49.1 million tons registered in the year-ago quarter. Sales volume during the quarter was impacted by a 7.9% year-over-year decline in Total U.S. Thermal Mining Operations.
Operating costs and expenses declined 13.5% to $906.2 million from $1,047.9 million in the prior-year quarter.
Revenues per U.S. thermal ton fell 3.1% year over year to $17.62. Moreover, cost per ton declined 5.7% to $13.54 as a result of a new organizational model. Peabody is consistently undertaking initiatives to adjust to difficult industry conditions through utilizing mine plans, moving contracts, reducing operations and synchronising its workforce according to customer demand.
Financial Update
As of Sep 30, 2019, cash and cash equivalents amounted to $759.1 million compared with $981.9 million on Dec 31, 2018.
Long-term debt of the company was $1,329.4 million as of Sep 30, 2019, down from $1,330.5 million on Dec 31, 2018.
During the quarter, Cash flow from operating activities amounted to $175.6 million compared with $345.4 million in the year-ago quarter.
Peabody repurchased $144.2 million stock in the third quarter.
Guidance
For 2019, Peabody expects sales volume from the Power River Basin in the range of 107-113 million short tons. It also anticipates exporting metallurgical coal in the range of 8.5-9 million short tons.
Also, the company projects 2019 capital expenditure in the range of $300-$325 million and interest expenses to be nearly $145 million.
Zacks Rank
Currently, Peabody carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Oils-Energy Releases
Alliance Resource Partners (ARLP - Free Report) delivered third-quarter 2019 earnings of 39 cents per share, which missed the Zacks Consensus Estimate of 46 cents by 15.2%.
Enterprise Products Partners (EPD - Free Report) delivered third-quarter 2019 earnings of 50 cents per share, which lagged the Zacks Consensus Estimate of 53 cents by 5.66%.
First Solar (FSLR - Free Report) delivered third-quarter 2019 earnings of $1.06 per share, which missed the Zacks Consensus Estimate of 29 cents by 72.64%.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
See their latest picks free >>