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

Walter Energy, Inc. (NYSE:WLT) had a loss and beat Wall Street’s expectations, BUT 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 1.52%.

Walter Energy, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased to $-0.55 in the quarter versus EPS of $0.43 in the year-earlier quarter.

Revenue: Decreased 34.84% to $441.5 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Walter Energy, Inc. reported adjusted EPS loss of $0.55 per share. By that measure, the company beat the mean analyst estimate of $-0.77. It missed the average revenue estimate of $472.99 million.

Quoting Management: “Our mines continue to perform well, as our focus on cost reduction and improving productivity continued in the second quarter, further improving our cost competitiveness,” said Walt Scheller, Chief Executive Officer. “In a difficult met coal pricing environment, we continue to pursue measures to reduce operating costs, SG&A expenses and capital spending.”

Key Stats (on next page)…

Revenue decreased 10.14% from $491.34 million in the previous quarter. EPS increased to $-0.55 in the quarter versus EPS of $-0.64 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 loss of $0.24 to a loss $0.83. For the current year, the average estimate has moved down from a loss of $1.39 to a loss of $2.87 over the last ninety days.

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 provided by Xignite Financials. Email any earnings discrepancies to earnings [at]