Shares of Alpha Natural Resources led the coal sector to several all-time highs Monday after the company reported first-quarter earnings that tripled and handily beat Wall Street's expectations.
The company earned 39 cents per share in the quarter, compared with 13 cents per share a year earlier and analysts' consensus expectation of 17 cents.
Alpha also boosted its average coal price prediction for the full year to between $70 and $71 per ton from $62 to $63 previously. It raised its production forecast, citing better efficiency and new mine projects.
Stifel Nicolaus & Co. Paul Forward held his 2008 estimates below the average prediction of analysts polled by Thomson Financial but maintained an above-consensus view for 2009.
But he noted that his and consensus forecasts for both years should move higher as prices for metallurgical coal _ used in steel production _ continue to soar on robust international demand. The company also has about 10 million tons of metallurgical coal unpriced for next year, Forward said, which provides an opportunity to take advantage of booming prices.
In afternoon trading, shares of Alpha Natural Resources Inc. surged $4.30, or 8.5 percent, to a new all-time high of $54.83. Its previous high was $54.50.
Massey Energy Co. leaped $4.14, or 7.8 percent, to $56.95. Shares hit a new all-time high of $57.33 earlier in the session. The stock's previous high was $55.74.
Arch Coal jumped $2.73, or 4.6 percent, to $61.98. The stock's 52-week high is $62.99.
Consol Energy Inc. rose $4.59, or 5.5 percent, to $88.88. The stock's 12-month high is $89.72.
Peabody Energy Corp. gained $1.49, or 2.4 percent, to $63.89. Its year high is $71.28.
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