The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Peabody Energy missed on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and earnings per share expanded.
Gross margins increased, operating margins grew, and net margins dropped.
Peabody Energy reported revenue of $2.3 billion. The 12 analysts polled by S&P Capital IQ anticipated revenue of $2.4 billion. Sales were 24% higher than the prior-year quarter's $1.8 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.72. The 20 earnings estimates compiled by S&P Capital IQ anticipated $1.32 per share on the same basis. GAAP EPS of $0.82 for Q4 were 5.0% higher than the prior-year quarter's $0.78 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 31.7%, 400 basis points better than the prior-year quarter. Operating margin was 20.4%, 370 basis points better than the prior-year quarter. Net margin was 9.9%, 160 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $2.4 billion. On the bottom line, the average EPS estimate is $1.16.
Next year's average estimate for revenue is $9.5 billion. The average EPS estimate is $4.77.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,909 members out of 1,988 rating the stock outperform, and 79 members rating it underperform. Among 434 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 416 give Peabody Energy a green thumbs-up, and 18 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Peabody Energy is outperform, with an average price target of $58.64.
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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. 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.