Peabody Energy Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Peabody Energy (NYSE:BTU) will unveil its latest earnings tomorrow, Tuesday, January 29, 2013. Peabody Energy mines steam coal for sale mainly to electric utilities and metallurgical coal for sale to industrial customers.

Peabody Energy Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for net income of 26 cents per share, a decline of 80.6% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 28 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 26 cents during the last month. For the year, analysts are projecting profit of $1.97 per share, a decline of 52.8% 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 17 cents, reporting net income of 51 cents per share against a mean estimate of profit of 34 cents per share.

Start 2013 better than ever by saving time and making money with your Limited Time Offer for our highly-acclaimed Stock Picker Newsletter. Click here for our fresh Feature Stock Pick now!

A Look Back: In the third quarter, profit fell 84.3% to $42.9 million (16 cents a share) from $274.1 million ($1 a share) the year earlier, but exceeded analyst expectations. Revenue rose 1.1% to $2.06 billion from $2.04 billion.

Here’s how Peabody Energy traded following its last earnings report 3 months ago and leading up to its upcoming earnings report this week:

btu

Wall St. Revenue Expectations: Analysts predict a decline of 14.2% in revenue from the year-earlier quarter to $1.93 billion.

Analyst Ratings: With 13 analysts rating the stock a buy, two rating it a sell and four rating the stock a hold, there are indications of a bullish stance by analysts.

Key Stats:

After experiencing income drops the past three quarters, the company is hoping to use this earnings announcement to rebound. Net income fell 2.2% in the first quarter, by 28.1% in the second quarter and again in the third quarter.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.48 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute — click here and get our CHEAT SHEET stock picks now.

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