Peabody Energy Earnings: Here’s Why Investors Are Mixed

Peabody Energy Corp. (NYSE:BTU) had a loss and missed Wall Street’s expectations, BUT beat the revenue expectation. Shares are down 0.12%.

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Peabody Energy Corp. Earnings Cheat Sheet

Results: Net loss to $1 billion (loss of $1.12 per diluted share) in the quarter versus a net loss of $222.3 million in the year-earlier quarter.

Revenue: Decreased 7.72% to $2.02 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Peabody Energy Corp. reported adjusted net loss of $1.12 per share. By that measure, the company missed the mean analyst estimate of $0.25. It beat the average revenue estimate of $1.93 billion.

Quoting Management: “Peabody generated solid 2012 operating performance, as record U.S. margins, rising Australian volumes and aggressive cost containment helped offset the significant impact of lower seaborne coal pricing,” said Peabody Energy Chairman and Chief Executive Officer Gregory H. Boyce…

…Our results and forward targets reflect the continued challenging market conditions we have seen.  We enter 2013 with a highly contracted U.S. portfolio and growing Australian volumes as we position the company to benefit when markets recover.”

Key Stats:

Revenue decreased 2.04% from $2.06 billion in the previous quarter. Net income increased to $0 in the quarter versus a net loss of $42.9 million 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 profit of $0.33 to a loss $0. For the current year, the average estimate has moved down from a profit of $1.98 to a profit of $1.95 over the last ninety days.

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(Company fundamentals provided by Xignite Financials.)