Peabody Energy Corp Earnings Cheat Sheet: Profits Grow by Double Digits For Fifth Straight Quarter

S&P 500 (NYSE:SPY) component Peabody Energy Corporation (NYSE:BTU) reported its results for the third quarter. Peabody Energy mines steam coal for sale mainly to electric utilities and metallurgical coal for sale to industrial customers.

Investing Insights: Amazon.com has a Stock Chart Technical Analysts Dream About.

Peabody Energy Earnings Cheat Sheet for the Third Quarter

Results: Net income for Peabody Energy Corporation rose to $274.1 million ($1.01 per share) vs. $224.1 million (83 cents per share) in the same quarter a year earlier. This marks a rise of 22.3% from the year earlier quarter.

Revenue: Rose 9.2% to $2.04 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: BTU reported adjusted net income of 87 cents per share. By that measure, the company fell short of mean estimate of 89 cents per share. Analysts were expecting revenue of $2.02 billion.

Quoting Management: “Peabody delivered solid third quarter results and we remain on track for our best year ever,” said Peabody Energy Chairman and Chief Executive Officer Gregory H. Boyce. “The market supply-demand indicators largely remain positive, with Asian and European coal-fueled generation rising, recent Chinese coal imports setting new records, and U.S. coal inventories falling dramatically. Peabody is well positioned in the United States with strong committed sales and low-cost production. Globally, we are growing to serve increasing Asia-Pacific demand by expanding existing mines and completing the acquisition of Macarthur Coal.”

Key Stats:

The company has now seen net income rise in three straight quarters. In the second quarter, net income rose 38.1% and in the first quarter, the figure rose 32%.

The company fell short of forecasts after beating estimates in the previous two quarters. In the second quarter, it topped the mark by 7 cents, and in the first quarter, it was ahead by 7 cents.

Revenue has now gone up for three straight quarters. In the second quarter, revenue rose 20.9% to $2.01 billion while the figure rose 15.1% in the first quarter from the year earlier.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the fourth quarter has moved down from $1.48 a share to $1.30 over the last sixty days. The average estimate for the fiscal year is now $3.96 per share, down from $4.50 sixty days ago.

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

Investing Insights: Amazon.com has a Stock Chart Technical Analysts Dream About.

(Source: Xignite Financials)