Alpha Natural Resources Inc. Third Quarter Earnings Sneak Peek

Alpha Natural Resources, Inc. (NYSE:ANR) will unveil its latest earnings on Thursday, November 3, 2011. 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.

Alpha Natural Resources, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 18 cents per share, a decline of 69% 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 $1.25. Between one and three months ago, the average estimate moved down. It also has dropped from 27 cents during the last month. Analysts are projecting profit to rise by 10.1% versus last year to $1.95.

Past Earnings Performance: The company has missed estimates in the last two quarters. In the second quarter, it missed the mark by 15 cents as a result of reporting profit of 96 cents against an estimate of net income of $1.11 per share. In the first quarter, the company fell short of forecasts by 25 cents.

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Wall St. Revenue Expectations: Analysts are projecting a rise of more than twofold in revenue from the year-earlier quarter to $2.07 billion.

Analyst Ratings: Analysts are bullish on this stock with 14 analysts rating it as a buy, none rating it as a sell and four rating it as a hold.

A Look Back: In the second quarter, the company swung to a loss of $56.4 million (36 cents a share) from a profit of $38.8 million (32 cents) a year earlier, missing analyst expectations. Revenue rose 59.3% to $1.59 billion from $1 billion.

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 32.6%, with the biggest boost coming in the most recent quarter when revenue rose 59.3% from the year earlier quarter.

Alpha Natural Resources’ loss in the latest quarter followed 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 of the last fiscal year and a profit of $31.9 million in the third quarter of the last fiscal year.

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 September 30, 2011 to October 28, 2011, the stock price had risen $8.87 (50.1%) from $17.69 to $26.56. 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 July 25, 2011 and August 8, 2011 when shares fell for 11-straight days, falling 44.1% (-$20.78) over that span. Shares are down $33.47 (-55.8%) year to date.

(Source: Xignite Financials)

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