Peabody Energy Corp Earnings: Revenue and Net Income Grow

S&P 500 (NYSE:SPY) component Peabody Energy Corporation (NYSE:BTU) reported higher profit for the fourth quarter as revenue showed growth. Peabody Energy mines steam coal for sale mainly to electric utilities and metallurgical coal for sale to industrial customers.

Investing Insights: Will the iPad 3 Be the Next Catalyst for Apple’s Stock?

Peabody Energy Earnings Cheat Sheet for the Fourth Quarter

Results: Net income for Peabody Energy Corporation rose to $222.4 million (82 cents per share) vs. $210 million (77 cents per share) in the same quarter a year earlier. This marks a rise of 5.9% from the year earlier quarter.

Revenue: Rose 25.7% to $2.25 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: BTU reported adjusted net income of 98 cents per share. By that measure, the company fell short of mean estimate of $1.31 per share. It fell short of the average revenue estimate of $2.35 billion.

Quoting Management: “2011 was the best year in Peabody’s history, combining our safest year, record-setting financial performance and a major metallurgical coal acquisition,” said Peabody Energy Chairman and Chief Executive Officer Gregory H. Boyce. “Looking forward, we are well positioned with fully contracted U.S. sales, an expanding Australian thermal and metallurgical coal platform, a growing global trading presence and multiple emerging Asian joint ventures. With the addition of Macarthur Coal, we now have one of the strongest development portfolios of thermal and metallurgical coal assets in the industry.”

Key Stats:

The company has now seen net income rise in three straight quarters. In the third quarter, net income rose 22.3% and in the second quarter, the figure rose 38.1%.

The company has now fallen short of estimates in the last two quarters. In the third quarter, it missed expectations by 2 cents with net income of 87 cents versus a mean estimate of net income of 89 cents per share.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the first quarter of the next fiscal year has moved down from $1.27 a share to $1.11 over the last ninety days. The average estimate for the fiscal year is now $3.97 per share, down from $4.01 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: Will the iPad 3 Be the Next Catalyst for Apple’s Stock?

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

To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com