Arch Coal, Inc. Quarterly Earnings Sneak Peek

Arch Coal, Inc. (NASDAQ:ACI) will unveil its latest earnings on Friday, July 29, 2011. Arch Coal, Inc. is a coal producer in the United States, which sells coal to power plants, steel mills and industrial facilities.

Arch Coal, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 63 cents per share, a rise of 46.5% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from 62 cents. For the year, analysts are projecting profit of $2.45 per share, a rise of more than twofold from last year.

Past Earnings Performance: The company beat estimates last quarter after falling short in the prior two. In the first quarter, the company reported net income of 36 cents per share versus a mean estimate of profit of 32 cents per share. In the fourth quarter of the last fiscal year, the company missed estimates by 14 cents.

Get more Earnings Cheat Sheets with our in depth coverage of earnings season >>

Wall St. Revenue Expectations: On average, analysts predict $955.6 million in revenue this quarter, a rise of 25% from the year ago quarter. Analysts are forecasting total revenue of $4.56 billion for the year, a rise of 42.9% from last year’s revenue of $3.19 billion.

Analyst Ratings: 13 out of 22 analysts surveyed (59.1%) have a buy rating on Arch Coal.. This is below the mean analyst rating of 10 competitors, which average 62.3% buy ratings.

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 29.5%, with the biggest boost coming in the third quarter of the last fiscal year when revenue rose 42.2% from the year earlier quarter.

The company raised its gross margin by 2.5 percentage points in the in the first quarter. Revenue rose 22.6% while cost of sales rose 18.7% to $653.7 million from a year earlier.

Competitors to Watch: Peabody Energy Corporation (NYSE:BTU), CONSOL Energy Inc. (NYSE:CNX), Patriot Coal Corporation (NYSE:PCX), Massey Energy Company (NYSE:MEE), Alpha Natural Resources, Inc. (NYSE:ANR), Alliance Holdings GP, L.P. (NASDAQ:AHGP), Intl. Coal Group, Inc. (NYSE:ICO), James River Coal Company (NASDAQ:JRCC), Natural Resource Partners LP (NYSE:NRP), and Alliance Resource Partners, L.P. (NASDAQ:ARLP).

Stock Price Performance: During April 28, 2011 to July 25, 2011, the stock price had fallen $5.09 (-15.2%) from $33.39 to $28.30. The stock price saw one of its best stretches over the last year between July 28, 2010 and August 6, 2010 when shares rose for eight-straight days, rising 20.3% (+$4.38) over that span. It saw one of its worst periods between August 17, 2010 and August 26, 2010 when shares fell for eight-straight days, falling 13.5% (-$3.33) over that span. Shares are down $6.52 (-18.7%) year to date.

(Source: Xignite Financials)

Get more Earnings Cheat Sheets with our in depth coverage of earnings season >>

More from The Cheat Sheet