Walter Energy Inc. Third Quarter Earnings Sneak Peek

Walter Energy Inc. (NYSE:WLT) will unveil its latest earnings on Wednesday, November 2, 2011.

Walter Energy Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of $1.14 per share, a decline of 55.6% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from $4.90. Between one and three months ago, the average estimate moved down. It also has dropped from $1.16 during the last month. Analysts are projecting profit to rise by 5.7% versus last year to $8.

Past Earnings Performance: The company has missed estimates in the last two quarters. In the second quarter, it missed the mark by $1.73 as a result of reporting net income of $2.36 against an estimate of profit of $4.09 per share. In the first quarter, the company fell short of forecasts by 18 cents.

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Wall St. Revenue Expectations: On average, analysts predict $722.3 million in revenue this quarter, a rise of 55.6% from the year ago quarter. Analysts are forecasting total revenue of $2.82 billion for the year, a rise of 77.4% from last year’s revenue of $1.59 billion.

Analyst Ratings: Analysts are bullish on Walter Energy as seven analysts rate it as a buy, one rates it as a sell and eight rate it as a hold.

A Look Back: In the second quarter, profit fell 7.6% to $107.4 million ($1.71 a share) from $116.2 million ($2.16 a share) the year earlier, missing analyst expectations. Revenue rose 88.3% to $773 million from $410.6 million.

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past four quarters. Over that span, the company has averaged growth of 63.9%, with the biggest boost coming in the most recent quarter when revenue rose 88.3% from the year earlier quarter.

The decrease in profit in the second quarter broke a streak of three consecutive quarters of year-over-year profit increases. Net income rose 96.9% in the first quarter, more than threefold in the fourth quarter of the last fiscal year and more than fivefold in the third quarter of the last fiscal year.

Competitors to Watch: Alpha Natural Resources, Inc. (NYSE:ANR), Arch Coal Inc (NYSE:ACI), Peabody Energy Corporation (NYSE:BTU), Patriot Coal Corporation (NYSE:PCX), CONSOL Energy Inc. (NYSE:CNX), Alpha Appalachia Hldgs., Inc. (NYSE:MEE), Natural Resource Partners LP (NYSE:NRP), Oxford Resource Partners, LP (NYSE:OXF), James River Coal Company (NASDAQ:JRCC), and Alliance Holdings GP, L.P. (NASDAQ:AHGP).

Stock Price Performance: During September 29, 2011 to October 27, 2011, the stock price had risen $18.71 (31%) from $60.45 to $79.16. The stock price saw one of its best stretches over the last year between March 18, 2011 and April 5, 2011 when shares rose for 13-straight days, rising 21.4% (+$24.72) over that span. It saw one of its worst periods between July 22, 2011 and August 8, 2011 when shares fell for 12-straight days, falling 46.4% (-$61.01) over that span. Shares are down $48.22 (-37.9%) year to date.

(Source: Xignite Financials)

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