Alpha Natural Resources, Inc. Second Quarter Earnings Sneak Peek

Alpha Natural Resources, Inc. (NYSE:ANR) will unveil its latest earnings on Thursday, August 4, 2011. 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.

Alpha Natural Resources, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of $1.11 per share, a rise of 79% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from $1.22. Between one and three months ago, the average estimate moved down, but it has been unchanged at $1.11 during the last month. For the year, analysts are projecting net income of $4.29 per share, a rise of 97.7% from last year.

Past Earnings Performance: The company fell short of estimates last quarter after topping forecasts the quarter prior. In the first quarter, it reported profit of 65 cents per share against a mean estimate of 90 cents. Two quarters ago, it beat expectations by 2 cents with net income of 27 cents.

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Wall St. Revenue Expectations: On average, analysts predict $1.48 billion in revenue this quarter, a rise of 48% from the year ago quarter. Analysts are forecasting total revenue of $7.37 billion for the year, a rise of 88% from last year’s revenue of $3.92 billion.

Analyst Ratings: Analysts are bullish on this stock with 13 analysts rating it as a buy, none rating it as a sell and four rating it as a hold.

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past four quarters. Over that span, the company has averaged growth of 54.6%, 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.

The company’s gross margin shrank by 5.8 percentage points in the in the first quarter. Revenue rose 22.6% while cost of sales rose 32.7% to $869.6 million from a year earlier.

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).

Stock Price Performance: During May 4, 2011 to July 29, 2011, the stock price had fallen $10.20 (-19.3%) from $52.91 to $42.71. The stock price saw one of its best stretches over the last year between March 15, 2011 and March 25, 2011 when shares rose for nine-straight days, rising 14% (+$7.38) over that span. It saw one of its worst periods between April 4, 2011 and April 14, 2011 when shares fell for nine-straight days, falling 11.6% (-$7.02) over that span. Shares are down $17.32 (-28.9%) year to date.

(Source: Xignite Financials)

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