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What: Shares of miner Arch Coal
So what: Third-quarter revenue rose 37% to $1.20 billion, but fell below estimates of $1.22 billion. Earnings per share was also disappointing at $0.08 per share, well below the $0.13 analysts were expecting.
Now what: How can your stock go up after a disappointing earnings announcement? For one thing, much of the bad news was already priced into the stock, and when management reaffirmed full-year guidance and announced some recent contracts, the market got excited. The company said that it expects exports to be strong as Asian steelmakers continue their demand, so the future might be brighter than the market thought a few weeks ago.
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Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.
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