Walter Energy Inc. reported its results for the fourth quarter.
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Walter Energy Earnings Cheat Sheet for the Fourth Quarter
Results: Net income for Walter Energy Inc. fell to $83.8 million ($1.34 per share) vs. $91.9 million ($1.72 per share) a year earlier. This is a decline of 8.8% from the year-earlier quarter.
Revenue: Rose 74.5% to $699.6 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Walter Energy Inc. fell short of the mean analyst estimate of $1.63 per share. It fell short of the average revenue estimate of $736.8 million.
Quoting Management: ing revenue by almost $1 billion and earning a record EBITDA of $822 million,” said Walt Scheller, Chief Executive Officer. “We completed a major met coal acquisition of Western Coal, which is contributing to significant sales growth, greater global diversification and the broadening of our portfolio of mining assets. For 2012, we remain well-positioned to achieve record met coal production, and we are on target for 11.5 – 13.0 MMTs comprised of approximately 75% hard coking coal and 25% PCI. We expect more than one-third of the increase to come from Mine No. 7, just under one-third to come from our other U.S. operations, and approximately one-third to come from our Canadian operations. Longer term, our development portfolio for new met coal projects is strong and should continue to make Walter Energy one of the largest and most profitable (measured by profit per ton) producers of met coal in the world.”
Key Stats:
For the past five quarters, the company has seen double-digit year-over-year percentage revenue growth. Over that span, the company has averaged growth of 62.4%, with the biggest boost coming in the second quarter when revenue rose 88.3% from the year earlier quarter.
The company has now seen net income fall in each of the last three quarters. In the third quarter, net income fell 44% from the year earlier, while the figure fell 7.6% in the second quarter.
The company fell short of estimates last quarter after beating the mark the quarter before with net income of $1.28 versus a mean estimate of net income of $1.11 per share.
Looking Forward: Expectations for the company’s next-quarter results are lower than they have been. Over the past sixty days, the average estimate for first quarter of the next fiscal year has fallen from $2.24 per share to $1.41. The average estimate for the fiscal year is $7.06 per share, down from $7.41 ninety days ago.
(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com
To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com
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