Arch Coal (NYSE: ACI) reported earnings on Oct. 26. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Arch Coal beat expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue dropped and GAAP earnings per share increased significantly. The non-GAAP profit was a surprise, as analysts had predicted a loss.

Gross margins dropped, operating margins contracted, net margins grew.

Revenue details
Arch Coal booked revenue of $1.09 billion. The 15 analysts polled by S&P Capital IQ predicted a top line of $1.02 billion on the same basis. GAAP reported sales were 9.3% lower than the prior-year quarter's $1.20 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.20. The 23 earnings estimates compiled by S&P Capital IQ anticipated -$0.15 per share. GAAP EPS of $0.22 for Q3 were 144% higher than the prior-year quarter's $0.09 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 17.5%, 330 basis points worse than the prior-year quarter. Operating margin was 5.0%, 340 basis points worse than the prior-year quarter. Net margin was 4.2%, 260 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $1.05 billion. On the bottom line, the average EPS estimate is -$0.15.

Next year's average estimate for revenue is $4.17 billion. The average EPS estimate is -$0.45.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 1,493 members out of 1,570 rating the stock outperform, and 77 members rating it underperform. Among 313 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 297 give Arch Coal a green thumbs-up, and 16 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Arch Coal is hold, with an average price target of $9.33.

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