Alliance Resource Partners Crushes Earnings Estimates

Alliance Resource Partners (Nasdaq: ARLP  ) reported earnings on Jan. 29. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Alliance Resource Partners beat slightly on revenues and crushed expectations on earnings per share.

Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share grew.

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

Revenue details
Alliance Resource Partners logged revenue of $549.4 million. The seven analysts polled by S&P Capital IQ predicted revenue of $541.8 million on the same basis. GAAP reported sales were 16% higher than the prior-year quarter's $474.6 million.

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 $1.87. The six earnings estimates compiled by S&P Capital IQ predicted $1.34 per share. GAAP EPS were $1.87 for Q4 against -$0.41 per share for the prior-year quarter.

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 33.6%, 270 basis points better than the prior-year quarter. Operating margin was 19.4%, 50 basis points better than the prior-year quarter. Net margin was 12.7%, 250 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $556.8 million. On the bottom line, the average EPS estimate is $1.64.

Next year's average estimate for revenue is $2.25 billion. The average EPS estimate is $6.87.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 709 members out of 730 rating the stock outperform, and 21 members rating it underperform. Among 198 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 192 give Alliance Resource Partners a green thumbs-up, and six give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Alliance Resource Partners is outperform, with an average price target of $75.71.

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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool recommends Alliance Resource Partners, L.P. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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