Alpha Natural Resources Earnings: Profit Streak Snapped by a Loss

Alpha Natural Resources, Inc. (NASDAQ:ANR) reported its results for the second quarter. Alpha Natural Resources, Inc. is a supplier and exporter of metallurgical coal for use in the steel-making process and a major supplier of thermal coal to electric utilities and manufacturing industries across the country.

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Alpha Natural Resources Earnings Cheat Sheet for the Second Quarter

Results: Swung to a loss of $56.4 million (36 cents per diluted share) in the quarter. The industrial metals and minerals company had net income of $38.8 million or 32 cents per share in the year earlier quarter.

Revenue: Rose 59.9% to $1.6 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: ANR reported adjusted net income of 96 cents per share. By that measure, the company fell short of mean estimate of $1.11 per share. It beat the average revenue estimate of $1.48 billion.

Quoting Management: “Following the completion of our acquisition of Massey Energy Company, safety trends are improving, and the rapid and well-received roll-out of our Running Right program is already yielding tangible results across the organization,” said Kevin Crutchfield, Alpha’s chief executive officer.” As of the end of June, approximately 40 of our operations had completed more than a year without a lost-time accident. However, improving trends are not enough. In the month of July, we lost a member of the Alpha family in an accident at the newly-acquired Voyager #7 mine.”

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 55.7%, with the biggest boost coming in the second quarter of the last fiscal year when revenue rose more than twofold from the year earlier quarter.

ANR’s loss in the latest quarter follows profits in the previous three quarters. The company reported a profit of $49.8 million in the first quarter, a profit of $10.8 million in the fourth quarter of the last fiscal year and $31.9 million in the third of the last fiscal year.

The company has now fallen short of estimates in the last two quarters. In the first quarter, it missed expectations by 25 cents with net income of 65 cents versus a mean estimate of net income of 90 cents per share.

Competitors to Watch: Massey Energy Company (NYSE:MEE), Peabody Energy Corporation (NYSE:BTU), Arch Coal, Inc. (NYSE:ACI), Patriot Coal Corporation (NYSE:PCX), Intl. Coal Group, Inc. (NYSE:ICO), CONSOL Energy Inc. (NYSE:CNX), Oxford Resource Partners, LP (NYSE:OXF), Alliance Resource Partners, L.P. (NASDAQ:ARLP), Alliance Holdings GP, L.P. (NASDAQ:AHGP), and Westmoreland Coal Company (AMEX:WLB).

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(Source: Xignite Financials)