Peabody Energy Corporation Second Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Peabody Energy Corporation (NYSE:BTU) will unveil its latest earnings on Tuesday, July 19, 2011. Peabody Energy Corporation mines steam coal for sale mainly to electric utilities and metallurgical coal for sale to industrial customers.

Peabody Energy Corporation Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of $1.05 per share, a rise of 52.2% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from $1.33. Between one and three months ago, the average estimate moved down and dropped from $1.06 during the last month. For the year, analysts are projecting profit of $4.48 per share, a rise of 46.9% from last year.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 7 cents, reporting net income of 67 cents per share against a mean estimate of profit of 60 cents per share.

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Wall St. Revenue Expectations: On average, analysts predict $2.02 billion in revenue this quarter, a rise of 21.7% from the year ago quarter. Analysts are forecasting total revenue of $8.13 billion for the year, a rise of 18.5% from last year’s revenue of $6.86 billion.

Analyst Ratings: Analysts are bullish on this stock with 17 analysts rating it as a buy, one rating it as a sell and two rating it as a hold.

Key Stats:

The company has now seen net income rise in three straight quarters. In the first quarter, net income rose 32% while it rose more than twofold in the fourth quarter of the last fiscal year and more than twofold in the third quarter of the last fiscal year.

Revenue rose in the first quarter after seeing a drop the quarter before. Revenue rose 15.1% to $1.74 billion in the first quarter from the year earlier. In the fourth quarter of the last fiscal year, revenue fell 8.6%.

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).

Stock Price Performance: During April 15, 2011 to July 13, 2011, the stock price had fallen $6.71 (-10.2%) from $65.48 to $58.77. The stock price saw one of its best stretches over the last year between August 17, 2010, and August 26, 2010, when shares rose for eight-straight days, rising 12.4% (+$5.15) over that span. Shares have been on a negative streak of late, closing down every day between July 11, 2011 and July 13, 2011. Shares are down $5.03 (-7.9%) year to date.

(Source: Xignite Financials)

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