Alpha Natural Resources Inc. Earnings Cheat Sheet: Beats Wall Street Expectations

Alpha Natural Resources Inc. (NYSE:ANR) reported net income above Wall Street’s expectations for the third quarter. Alpha Natural Resources 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 Third Quarter

Results: Net income for the industrial metals and minerals company rose to $66.4 million (29 cents per share) vs. $31.9 million (27 cents per share) in the same quarter a year earlier. This is a more than twofold rise from the year earlier quarter.

Revenue: Rose more than twofold to $2.3 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: ANR reported adjusted net income of 35 cents per share. By that measure, the company beat the mean estimate of 18 cents per share. It beat the average revenue estimate of $2.07 billion.

Quoting Management: “Alpha again demonstrated the success of its ‘Running Right’ approach to safety during the third quarter,” said Kevin Crutchfield, Alpha’s chief executive officer. “Both our Love Branch South and Enterprise operations were recognized with underground mine safety awards in Kentucky, and both operations had no lost-time accidents during 2010.”

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 52.1%, with the biggest boost coming in the most recent quarter when revenue rose more than twofold from the year earlier quarter.

The company beat estimates last quarter after falling short in the previous two quarters. In the second quarter, it missed the mark by 15 cents, and in the first quarter, it fell short by 25 cents.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the fourth quarter has moved down from $1.24 a share to 34 cents over the last ninety days. At $1.95 per share, the average estimate for the fiscal year has fallen from $4.30 ninety days ago.

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)