Peabody Energy (BTU) Incurs Loss In Q2, Revenues Miss Mark

Peabody Energy Corp. (NYSE:BTU) announced second-quarter 2017 loss of 18 cents per share. The Zacks Consensus Estimate for the quarter was pegged at earnings of 89 cents. The company had posted a loss of $12.30 per share in second-quarter 2016.

Revenue

Peabody Energy’s quarterly revenues of $1,258.3 million increased 21.2% year over year from $1,040.2 million. However, revenues missed the Zacks Consensus Estimate of $1,263 million by 5% year over year.

Operational Update

Peabody Energy’s total sales volume in the quarter was 6.6 million tons. Per the company, the sales volume was negatively impacted by the effects of rail disruptions caused by Cyclone Debbie in Australia.

Operating costs and expenses incurred in the reported quarter declined 6.2% year over year to $934.8 million from $996.2 million, which was an outcome of the company’s cost-saving measures.

Revenues per ton in the U.S. decreased 7.6% year over year to $18.91, while revenues per ton in Australia rose 60.6% to $79.54.

Peabody Energy’s second-quarter 2017 adjusted earnings before interest, tax, depreciation and amortization (“EBITDA”) were $317.8 million, marking a rise of 338% from $72.6 million year over year.

Operating profit in second-quarter 2017 was $146 million compared with the operating loss of $107.7 million a year ago.

Financial Update

As of Jun 30, cash and cash equivalents at end of period was $ 1,095.7 million compared to $872.3 million as of Dec 31, 2016.

As of Jun 30 long-term debt of the company was $1,768.1 million.

Guidance

For the full year 2017, the company expects the capital expenditure to be in the range of $165–$195 million.

Zacks Rank

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

Peers Release

CONSOL Energy Inc. (NYSE:CNX) reported earnings of 17 cents per share in second-quarter 2017, beating the Zacks Consensus Estimate of 10 cents by 70.0%.

SunCoke Energy (NYSE:SXC) reported loss of 7 cents per share in the second quarter of 2017, narrower than the Zacks Consensus Estimate of a loss of 14 cents.

Cloud Peak Energy (NYSE:CLD) reported a loss of 4 cents per share in the second quarter of 2017, which was in line with the Zacks Consensus Estimate.

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