The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Arch Coal missed estimates on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly, and GAAP earnings per share improved.
Gross margins contracted, operating margins were steady, and net margins dropped.
Arch Coal booked revenue of $1.23 billion. The 11 analysts polled by S&P Capital IQ anticipated a top line of $1.29 billion on the same basis. GAAP reported sales were 63% higher than the prior-year quarter's $754.8 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.29. The 22 earnings estimates compiled by S&P Capital IQ averaged $0.31 per share on the same basis. GAAP EPS of $0.33 for Q4 were 14% higher than the prior-year quarter's $0.29 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 23%, 520 basis points worse than the prior-year quarter. Operating margin was 11.5%, about the same as the prior-year quarter. Net margin was 5.8%, 50 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.21 billion. On the bottom line, the average EPS estimate is $0.37.
Next year's average estimate for revenue is $4.84 billion. The average EPS estimate is $1.43.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,379 members out of 1,435 rating the stock outperform and 57 members rating it underperform. Among 373 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 364 give Arch Coal a green thumbs-up, and nine give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Arch Coal is outperform, with an average price target of $26.29.
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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.