SunCoke Energy Earnings: Here’s Why Investors are Excited Now

SunCoke Energy, Inc (NYSE:SXC) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 0.19%.

SunCoke Energy, Inc Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 75% to $0.08 in the quarter versus EPS of $0.32 in the year-earlier quarter.

Revenue: Decreased 12.41% to $403.7 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: SunCoke Energy, Inc reported adjusted EPS income of $0.08 per share. By that measure, the company missed the mean analyst estimate of $0.09. It missed the average revenue estimate of $431.75 million.

Quoting Management: “Our coal business continues to be a challenge, weighing down Adjusted EBITDA by nearly $12 million in the second quarter,” said Fritz Henderson, Chairman and Chief Executive Officer of SunCoke Energy, Inc. “In response to industry conditions, we have made substantial progress on our coal action plan, reducing coal production costs by about $19 per ton, and we are confident in our ability to further drive down these costs. Our domestic coke business continues to deliver solid results, generating $61.3 million of Adjusted EBITDA in the quarter. We believe we can sustain and build on this performance as we focus on achieving operations excellence and continue to make progress refurbishing our Indiana Harbor cokemaking facility.”

Henderson continued, “Looking ahead to the second half of the year, we stand behind our full year 2013 guidance for consolidated Adjusted EBITDA and earnings per share of $205 million – $230 million and $0.30 – $0.55 per share, respectively.”

Key Stats (on next page)…

Revenue decreased 11.06% from $453.9 million in the previous quarter. EPS increased 166.67% from $0.03 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.1 and has not changed. For the current year, the average estimate has moved up from a profit of $0.43 to a profit of $0.46 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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