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

SunCoke Energy, Inc (NYSE:SXC) delivered a profit and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 1.55%.

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SunCoke Energy, Inc Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 87.5% to $0.03 in the quarter versus EPS of $0.24 in the year-earlier quarter.

Revenue: Decreased 5.69% to $453.9 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: SunCoke Energy, Inc reported adjusted EPS income of $0.03 per share. By that measure, the company missed the mean analyst estimate of $0.05. It beat the average revenue estimate of $397.88 million.

Quoting Management: “We achieved several key strategic milestones in the first quarter with the completion of the initial public offering of SunCoke Energy Partners and closing on the VISA SunCoke joint venture in India. These key milestones lay a foundation for growth domestically and overseas.” said Fritz Henderson, Chairman and Chief Executive Officer of SunCoke Energy, Inc. “As expected, our Adjusted EBITDA was down in the quarter due to the significant decline in metallurgical coal prices and operating challenges at Indiana Harbor, where a major plant refurbishment is underway. These challenges were partly offset by strong performance at Middletown and coal mining cost reductions.”

Key Stats (on next page)…

Revenue decreased 7.63% from $491.4 million in the previous quarter. EPS decreased 92.31% from $0.39 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 $0.12 to a profit $0.1. For the current year, the average estimate has moved down from a profit of $0.72 to a profit of $0.43 over the last ninety days.

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