Alpha Natural Resources Inc. Earnings: Swings to a Loss, Falling Short of Estimates

On top of dropping to a loss in the first quarter, Alpha Natural Resources Inc. (NYSE:ANR) also came in short of analyst estimates. 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 First Quarter

Results: Reported a loss of $29.1 million (13 cents per diluted share) in the quarter. Alpha Natural Resources Inc. had a net income of $49.8 million or 41 cents per share in the year-earlier quarter.

Revenue: Rose 70.7% to $1.93 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Alpha Natural Resources Inc. reported an adjusted net loss of 27 cents per share. By that measure, the company fell short of the mean analyst estimate of a loss of 7 cents per share. Analysts were expecting revenue of $1.9 billion.

Quoting Management: “During the first quarter, Alpha’s workforce continued to deliver on our shared commitment to Running Right,” said Kevin Crutchfield, Alpha’s chief executive officer. “We recently announced that eight operations received MSHA’s 2011 Sentinel of Safety certificates, and two operations received Mountaineer Guardian Safety awards. In addition, Alpha’s incident rate improved 21 percent in the first quarter of 2012, compared to the last seven months of 2011 since the closing of the Massey acquisition. We salute the successful efforts of our workforce, but the loss of a member of the Alpha family at the Kingston No. 2 mine reminds us that Alpha’s safety goal is zero incidents. To that end, we remain dedicated to Running Right and continuous improvement in our safety performance.”

Key Stats:

The company has seen double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 78.4%, with the biggest boost coming in the third quarter of the last fiscal year when revenue rose more than twofold from the year earlier quarter.

The company has fallen short of estimates for two consecutive quarters. In the fourth quarter of the last fiscal year, it missed expectations by 33 cents with a loss of 7 cents versus a mean estimate of net income of 26 cents per share.

Looking Forward: For the next quarter, analysts are growing pessimistic about the company’s expected results. The average estimate for the second quarter is now a loss of 16 cents per share, down from a profit of 26 cents ninety days ago. For the fiscal year, the average estimate has moved down from a profit of $1.13 a share to a loss of 42 cents over the last ninety days.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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