Peabody Energy (NYSE:BTU) Posts Quarterly Earnings Results, Misses Estimates By $0.22 EPS

Peabody Energy (NYSE:BTU) issued its earnings results on Wednesday. The coal producer reported ($0.27) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.05) by ($0.22), FiscalAI reports. The firm had revenue of $1.10 billion during the quarter, compared to analysts’ expectations of $1.03 billion. Peabody Energy had a negative return on equity of 5.22% and a negative net margin of 4.56%. The business’s revenue was up 8.3% on a year-over-year basis. During the same quarter last year, the business earned ($0.58) EPS.

Here are the key takeaways from Peabody Energy’s conference call:

• Centurion’s ramp-up remains delayed. Complex faulting limited October production to just over 45,000 tons, prompting a fourth-quarter sales outlook of 300,000–500,000 tons and a 600,000-ton reduction to full-year metallurgical volume guidance; management says its long-term capacity outlook is unchanged.
• Seaborne thermal performance and markets strengthened. The segment’s adjusted EBITDA rose 60% year over year, and Peabody raised full-year export volume guidance by 200,000 tons, citing higher Wambo production and stronger Newcastle pricing.
• Weak U.S. coal burn weighed on thermal volumes. Peabody lowered full-year Powder River Basin volume guidance by 7.5 million tons and other U.S. thermal guidance by 200,000 tons, while noting that near-term demand depends on weather, gas prices, and renewable generation.
• Adjusted EBITDA improved, and liquidity remained substantial. Third-quarter adjusted EBITDA was $97.5 million, up from the second quarter, and Peabody ended the period with $434 million in cash and $887 million in liquidity; it also reported $192 million returned to shareholders year to date through September.

Peabody Energy Price Performance

Shares of BTU stock traded down $4.26 during mid-day trading on Wednesday, hitting $16.39. 4,415,048 shares of the stock were exchanged, compared to its average volume of 2,990,309. Peabody Energy has a 52-week low of $15.97 and a 52-week high of $41.14. The company has a quick ratio of 1.46, a current ratio of 2.01 and a debt-to-equity ratio of 0.10. The company has a market cap of $2.00 billion, a PE ratio of -10.93 and a beta of 0.46. The firm has a fifty day moving average of $25.54 and a 200 day moving average of $28.04.

Analyst Ratings Changes

BTU has been the subject of a number of research reports. UBS Group decreased their target price on Peabody Energy from $27.00 to $26.50 and set a “neutral” rating for the company in a report on Tuesday, August 4th. Benchmark lowered their price target on shares of Peabody Energy from $40.00 to $36.00 and set a “buy” rating on the stock in a report on Thursday, July 30th. Zacks Research downgraded Peabody Energy from a “hold” rating to a “strong sell” rating in a research report on Tuesday, October 27th. Weiss Ratings raised Peabody Energy from a “sell (d)” rating to a “sell (d+)” rating in a report on Friday, October 2nd. Finally, B. Riley Financial upgraded Peabody Energy from a “neutral” rating to a “buy” rating and upped their target price for the stock from $29.00 to $30.00 in a research note on Monday, October 26th. Three investment analysts have rated the stock with a Buy rating, one has assigned a Hold rating and two have issued a Sell rating to the company’s stock. According to MarketBeat, the company has an average rating of “Hold” and a consensus price target of $34.12.

About Peabody Energy

Peabody Energy Corp. is a global coal producer and supplier of energy and industrial fuels. The company mines, processes and markets thermal coal, which is primarily used for electricity generation, and metallurgical coal, which is used in steelmaking. Peabody also provides coal-trading and logistics services and works with customers to transport products to domestic and international markets.

Peabody operates mines in the United States and Australia, serving electric utilities, steel producers and other industrial customers.