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Peabody Energy (BTU) Q3 Earnings Lag, Revenues Beat Estimates

Zacks Equity Research

Peabody Energy BTU incurred third-quarter 2019 loss of 57 cents per share, which is wider than the Zacks Consensus Estimate of a loss of 41 cents. However, the company reported earnings of 63 cents in the year-ago quarter.

Revenues

Quarterly revenues of $1.11 billion surpassed the Zacks Consensus Estimate of $1.09 billion by 1.8%. However, the top line declined 21.3% from $1.41 billion recorded in the year-ago quarter. Revenues during the quarter were impacted by 36% low seaborne metallurgical coal sales volumes and nearly $90 million in pricing decline, excluding higher Kayenta revenues.

Peabody Energy Corporation Price, Consensus and EPS Surprise

 

Peabody Energy Corporation Price, Consensus and EPS Surprise

Peabody Energy Corporation price-consensus-eps-surprise-chart | Peabody Energy Corporation Quote

 

Quarterly Highlights

Peabody’s total sales volume was 44.8 million tons, down 8.76% from 49.1 million tons registered in the year-ago quarter. Sales volume during the quarter was impacted by a 7.9% year-over-year decline in Total U.S. Thermal Mining Operations.

Operating costs and expenses declined 13.5% to $906.2 million from $1,047.9 million in the prior-year quarter.

Revenues per U.S. thermal ton fell 3.1% year over year to $17.62. Moreover, cost per ton declined 5.7% to $13.54 as a result of a new organizational model. Peabody is consistently undertaking initiatives to adjust to difficult industry conditions through utilizing mine plans, moving contracts, reducing operations and synchronising its workforce according to customer demand.

Financial Update

As of Sep 30, 2019, cash and cash equivalents amounted to $759.1 million compared with $981.9 million on Dec 31, 2018.

Long-term debt of the company was $1,329.4 million as of Sep 30, 2019, down from $1,330.5 million on Dec 31, 2018.

During the quarter, Cash flow from operating activities amounted to $175.6 million compared with $345.4 million in the year-ago quarter.

Peabody repurchased $144.2 million stock in the third quarter.

Guidance

For 2019, Peabody expects sales volume from the Power River Basin in the range of 107-113 million short tons. It also anticipates exporting metallurgical coal in the range of 8.5-9 million short tons.

Also, the company projects 2019 capital expenditure in the range of $300-$325 million and interest expenses to be nearly $145 million.

Zacks Rank

Currently, Peabody carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Oils-Energy Releases

Alliance Resource Partners ARLP delivered third-quarter 2019 earnings of 39 cents per share, which missed the Zacks Consensus Estimate of 46 cents by 15.2%.

Enterprise Products Partners EPD delivered third-quarter 2019 earnings of 50 cents per share, which lagged the Zacks Consensus Estimate of 53 cents by 5.66%.

First Solar FSLR delivered third-quarter 2019 earnings of $1.06 per share, which missed the Zacks Consensus Estimate of 29 cents by 72.64%.

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