Peabody Energy (NYSE:BTU) Announces Earnings Results, Misses Estimates By $0.22 EPS

Peabody Energy (NYSE:BTU) announced its quarterly earnings data on Wednesday. The coal producer reported ($0.27) EPS for the quarter, missing the consensus estimate of ($0.05) by ($0.22), FiscalAI reports. The firm had revenue of $1.10 billion for the quarter, compared to analysts’ expectations of $1.03 billion. Peabody Energy had a negative net margin of 4.56% and a negative return on equity of 5.22%. The business’s quarterly revenue was up 8.3% compared to the same quarter last year. During the same period in the prior year, the business posted ($0.58) EPS.

Here are the key takeaways from Peabody Energy’s conference call:

• Centurion’s ramp-up remains delayed. Complex faulting limited October production to just over 45,000 tons, prompting a fourth-quarter sales outlook of 300,000–500,000 tons and a 600,000-ton reduction to full-year metallurgical volume guidance; management says its long-term capacity outlook is unchanged.
• Seaborne thermal performance and markets strengthened. The segment’s adjusted EBITDA rose 60% year over year, and Peabody raised full-year export volume guidance by 200,000 tons, citing higher Wambo production and stronger Newcastle pricing.
• Weak U.S. coal burn weighed on thermal volumes. Peabody lowered full-year Powder River Basin volume guidance by 7.5 million tons and other U.S. thermal guidance by 200,000 tons, while noting that near-term demand depends on weather, gas prices, and renewable generation.
• Adjusted EBITDA improved, and liquidity remained substantial. Third-quarter adjusted EBITDA was $97.5 million, up from the second quarter, and Peabody ended the period with $434 million in cash and $887 million in liquidity; it also reported $192 million returned to shareholders year to date through September.

Peabody Energy Price Performance

Shares of NYSE BTU opened at $17.00 on Thursday. The firm has a market capitalization of $2.07 billion, a PE ratio of -11.34 and a beta of 0.46. The company has a debt-to-equity ratio of 0.10, a quick ratio of 1.46 and a current ratio of 2.01. Peabody Energy has a fifty-two week low of $15.97 and a fifty-two week high of $41.14. The stock’s 50-day simple moving average is $25.33 and its 200-day simple moving average is $27.94.

Peabody Energy Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, December 9th. Stockholders of record on Thursday, November 19th will be issued a $0.0750 dividend. The ex-dividend date is Thursday, November 19th. This represents a $0.30 dividend on an annualized basis and a dividend yield of 1.8%. Peabody Energy’s dividend payout ratio is presently -20.00%.

Analysts Set New Price Targets

A number of analysts have commented on BTU shares. UBS Group reduced their price target on Peabody Energy from $27.00 to $26.50 and set a “neutral” rating for the company in a research report on Tuesday, August 4th. Weiss Ratings upgraded shares of Peabody Energy from a “sell (d)” rating to a “sell (d+)” rating in a report on Friday, October 2nd. Zacks Research cut shares of Peabody Energy from a “hold” rating to a “strong sell” rating in a research report on Tuesday, October 27th. Benchmark cut their price target on Peabody Energy from $40.00 to $36.00 and set a “buy” rating on the stock in a research report on Thursday, July 30th. Finally, B. Riley Financial upgraded Peabody Energy from a “neutral” rating to a “buy” rating and raised their price objective for the company from $29.00 to $30.00 in a report on Monday, October 26th. Three analysts have rated the stock with a Buy rating, one has given a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of “Hold” and a consensus target price of $34.12.

Key Headlines Impacting Peabody Energy

Here are the key news stories impacting Peabody Energy this week:

• Positive Sentiment: Revenue rose 8.3% year over year to $1.10 billion, topping estimates, while the per-share loss narrowed to $0.27 from $0.58 a year earlier. Peabody said all segments posted positive adjusted EBITDA and anticipated stronger fourth-quarter production and free cash flow. Peabody reports third-quarter results
• Positive Sentiment: The board declared a quarterly dividend of $0.075 per share, payable December 9 to shareholders of record November 19. Peabody dividend announcement
• Neutral Sentiment: Peabody outlined fourth-quarter Centurion sales of 300,000–500,000 tons and scheduled $1.5 million–$10 million for longwall upgrades. The sales outlook may support operations, while the upgrades represent planned spending. Centurion sales and upgrade plans
• Negative Sentiment: The key drag was adjusted earnings: Peabody reported a $0.27-per-share loss, missing the roughly $0.05 loss analysts expected. The earnings shortfall outweighed the revenue beat and helps explain the negative investor reaction. Coverage of Peabody’s larger-than-expected loss

Peabody Energy Company Profile

Peabody Energy Corp. is a global coal producer and supplier of energy and industrial fuels. The company mines, processes and markets thermal coal, which is primarily used for electricity generation, and metallurgical coal, which is used in steelmaking. Peabody also provides coal-trading and logistics services and works with customers to transport products to domestic and international markets.

Peabody operates mines in the United States and Australia, serving electric utilities, steel producers and other industrial customers.