Alpha Natural Resources Earnings: Here’s Why the Stock is Up Now

Alpha Natural Resources, Inc. (NYSE:ANR) had a loss and met Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 0.37%.

Alpha Natural Resources, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased to $-0.59 in the quarter versus EPS of $-0.33 in the year-earlier quarter.

Revenue: Decreased 27.76% to $1.34 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Alpha Natural Resources, Inc. reported adjusted EPS loss of $0.59 per share. By that measure, the company met the mean analyst estimate of $-0.59. It beat the average revenue estimate of $1.24 billion.

Quoting Management: “Alpha continues to proactively address changing market conditions by optimizing our mine portfolio and idling additional uneconomic metallurgical and thermal coal capacity, and we anticipate additional actions may be required between now and the end of the year. At the same time, we remain focused on adjusting our overhead and capital expenditures in proportion with our changing operational footprint,” said Kevin Crutchfield, chairman and CEO. “In this environment, operational execution and the ability to implement thoughtful changes with alacrity are paramount to our success. In addition, our commitment to safety has never been stronger as evidenced by the recent dedication of our Running Right Leadership Academy, an industry-leading training facility that will enable our workforce to gain critical skills and experience in a safe and controlled training environment. The Leadership Academy is the first of its kind and will advance Alpha and the industry toward the goal of zero fatalities and a 50 percent reduction in lost time accidents.”

Key Stats (on next page)…

Revenue increased 0.11% from $1.33 billion in the previous quarter. EPS decreased to $-0.59 in the quarter versus EPS of $-0.47 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a loss of $0.54 to a loss $0.64. For the current year, the average estimate has moved down from a loss of $2.07 to a loss of $2.33 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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