James River Coal Company Third Quarter Earnings Sneak Peek

James River Coal Company (NASDAQ:JRCC) will unveil its latest earnings on Wednesday, November 7, 2012. James River Coal Company mines, processes and sells bituminous, steam- and industrial-grade coal through six operating subsidiaries located throughout eastern Kentucky and one in southern Indiana.

James River Coal Company Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net loss of 97 cents per share, a wider loss from the year-earlier quarter net loss of 9 cents. During the past three months, the average estimate has moved down from a loss of 85 cents. Between one and three months ago, the average estimate moved down. It also has dropped from a loss of 94 cents during the last month.

Past Earnings Performance: Last quarter, the company beat estimates by 8 cents, coming in at a loss of 74 cents per share against an estimate of net loss of. The company also topped expectations in the first quarter.

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A Look Back: In the second quarter, the company swung to a loss of $25.8 million (74 cents a share) from a profit of $789,000 (2 cents) a year earlier, but beat analyst expectations. Revenue fell 21.2% to $277.4 million from $352 million.

Stock Price Performance: Between August 8, 2012 and November 1, 2012, the stock price rose $2.73 (122.4%), from $2.23 to $4.96. The stock price saw one of its best stretches over the last year between June 12, 2012 and June 20, 2012, when shares rose for seven straight days, increasing 76.3% (+$1.48) over that span. It saw one of its worst periods between May 23, 2012 and June 4, 2012 when shares fell for eight straight days, dropping 31.1% (-$1.02) over that span.

Wall St. Revenue Expectations: Analysts predict a decline of 13.9% in revenue from the year-earlier quarter to $261.6 million.

Key Stats:

On the top line, the company is looking to get back on the right track after last quarter’s drop snapped a string of revenue increases. Revenue rose 77.3% in the third quarter of the last fiscal year, more than twofold in the fourth quarter of the last fiscal year and 83.5%in the first quarter before dropping in the second quarter.

Analyst Ratings: There are mostly holds on the stock with nine of 10 analysts surveyed giving that rating.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 2.73 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands.

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

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