James River Coal Earnings: Here’s Why the Stock is Rising Now

James River Coal Co. (NASDAQ:JRCC) had a loss and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 10.91%.

Markets are at 5-year highs! Discover the best stocks to own. Click here for our fresh Feature Stock Pick now!

James River Coal Co. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased to $-1.21 in the quarter versus EPS of $-0.45 in the year-earlier quarter.

Revenue: Decreased 35.99% to $193.3 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: James River Coal Co. reported adjusted EPS loss of $1.21 per share. By that measure, the company beat the mean analyst estimate of $-1.60. It beat the average revenue estimate of $190.55 million.

Quoting Management: Peter T. Socha, Chairman and Chief Executive Officer commented: “Our mining operations had an excellent quarter. As previously discussed, they have substantially completed a major restructuring of all mines and support services. We are now beginning to see the results of this process in both coal production and costs. We are continuing to adjust our operations to changes in the markets for both thermal and met coal. The domestic thermal coal market appears to be benefitting from higher prices in the natural gas market. We are a little more cautious on the met coal market today due to the influence of global economic factors. Lastly, we are continuing to evaluate a wide variety of options to improve our liquidity and strengthen our balance sheet. We are very grateful for the large number of holders of our debt and equity securities that have contacted us to discuss their thoughts and suggestions.”

Key Stats (on next page)…

Revenue decreased 16.74% from $232.16 million in the previous quarter. EPS increased to $-1.21 in the quarter versus EPS of $-1.59 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a loss of $1.50 to a loss $1.55. For the current year, the average estimate has moved down from a loss of $5.79 to a loss of $6.03 over the last ninety days.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)