Peabody Energy Earnings Cheat Sheet: Fifth Straight Quarter of Double-Digit Growth

S&P 500 (NYSE:SPY) component Peabody Energy Corporation (NYSE:BTU) reported net income above Wall Street’s expectations for the second quarter. Peabody Energy Corporation mines steam coal for sale mainly to electric utilities and metallurgical coal for sale to industrial customers.

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Peabody Energy Earnings Cheat Sheet for the Second Quarter

Results: Net income for Peabody Energy Corporation rose to $284.8 million ($1.05 per share) vs. $206.2 million (76 cents per share) in the same quarter a year earlier. This marks a rise of 38.1% from the year earlier quarter.

Revenue: Rose 20.9% to $2.01 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: BTU reported adjusted net income of $1.11 per share. By that measure, the company beat the mean estimate of $1.04 per share. Analysts were expecting revenue of $2.02 billion.

Quoting Management: “Peabody once again delivered substantial increases in revenues, EBITDA, operating profit and earnings over the prior year, and we expect an even stronger second half,” said Peabody Energy Chairman and Chief Executive Officer Gregory H. Boyce. “Peabody also is leveraging our unique access to the strongest global markets as we look to expand our Australia platform through organic growth and acquisitions, participate in the Mongolian Tavan Tolgoi development and partner in potential development of one of China’s largest coal mines.”

Key Stats:

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

The company has now topped analyst estimates for the last four quarters. It beat the mark by 7 cents in the first quarter, by 15 cents in the fourth quarter of the last fiscal year, and by 8 cents in the third quarter of the last fiscal year.

The company’s revenue has now risen for two straight quarters. In the first quarter, revenue increased 15.1% to $1.74 billion from the year earlier quarter.

Gross margins grew 1.3 percentage points to 30.6%. The growth seemed to be driven by increased revenue, as the figure rose 20.9% from the year earlier quarter while costs rose 18.6%.

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).

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(Source: Xignite Financials)