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Earnings Preview: Peabody Energy

·2 min read

Peabody Energy (NYSE:BTU) announces its next round of earnings this Thursday, February 04. Here is Benzinga's look at Peabody Energy's Q4 earnings report.

Net Income, Earnings, And Earnings Per Share

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Sell-side analysts are expecting Peabody Energy's loss per share to be near $0.5 on sales of $706.45 million. Peabody Energy reported a per-share loss of $1.11 when it published results during the same quarter last year. Sales in that period totaled $1.12 billion.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

View more earnings on BTU

The analyst consensus estimate would represent a 54.95% increase in the company's EPS figure. Sales would have fallen 36.75% from the same quarter last year. Here is how the company's EPS has stacked up against analyst estimates in the past:

EPS Estimate

-0.92

-1.28

-1.01

-1.21

EPS Actual

-0.69

-1.32

-1.31

-1.11

Revenue Estimate

690.60 M

697.00 M

830.97 M

1.04 B

Revenue Actual

671.00 M

626.70 M

846.20 M

1.12 B

Stock Performance

Over the last 52-week period, shares are down 51.51%. Given that these returns are generally negative, long-term shareholders won't be happy going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Peabody Energy is scheduled to hold the call at 11:00:00 ET and can be accessed here.

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