Peabody Energy (NYSE:BTU) Issues Quarterly Earnings Results

Peabody Energy (NYSE:BTU) announced its quarterly earnings data on Wednesday. The coal producer reported ($0.27) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.05) by ($0.22), FiscalAI reports. Peabody Energy had a negative net margin of 3.55% and a negative return on equity of 4.26%. The business had revenue of $1.10 billion for the quarter, compared to analysts’ expectations of $1.03 billion. During the same period in the prior year, the company posted ($0.58) EPS. The firm’s revenue was up 8.3% on a year-over-year basis.

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 Trading Down 5.9%

Shares of BTU stock opened at $16.01 on Friday. The company has a debt-to-equity ratio of 0.08, a quick ratio of 1.46 and a current ratio of 1.84. The stock’s 50-day moving average price is $25.10 and its 200 day moving average price is $27.84. Peabody Energy has a 52-week low of $15.78 and a 52-week high of $41.14.

Peabody Energy Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Wednesday, December 9th. Investors of record on Thursday, November 19th will be given a $0.0750 dividend. This represents a $0.30 annualized dividend and a yield of 1.9%. The ex-dividend date is Thursday, November 19th. Peabody Energy’s payout ratio is -20.00%.

Wall Street Analysts Forecast Growth

A number of analysts have issued reports on the company. Benchmark cut their target price on Peabody Energy from $40.00 to $36.00 and set a “buy” rating for the company in a research note on Thursday, July 30th. UBS Group cut their price objective on Peabody Energy from $27.00 to $26.50 and set a “neutral” rating on the stock in a 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 Peabody Energy from a “hold” rating to a “strong sell” rating in a research note on Tuesday, October 27th. Finally, B. Riley Financial upgraded shares of Peabody Energy from a “neutral” rating to a “buy” rating and boosted their target price for the stock from $29.00 to $30.00 in a research note on Monday, October 26th. Three research analysts have rated the stock with a Buy rating, one has issued a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat, the company currently has an average rating of “Hold” and a consensus target price of $34.12.

About Peabody Energy

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.