The 10-second takeaway
For the quarter ended March 31 (Q1), Peabody Energy missed estimates on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share contracted.
Gross margins expanded, operating margins increased, and net margins shrank.
Peabody Energy reported revenue of $2.04 billion. The 13 analysts polled by S&P Capital IQ foresaw sales of $2.09 billion on the same basis. GAAP reported sales were 17% higher than the prior-year quarter's $1.74 billion.
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 $0.67. The 18 earnings estimates compiled by S&P Capital IQ predicted $0.54 per share on the same basis. GAAP EPS of $0.63 for Q1 were 3.1% lower than the prior-year quarter's $0.65 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 29.4%, 210 basis points better than the prior-year quarter. Operating margin was 18.1%, 130 basis points better than the prior-year quarter. Net margin was 8.5%, 160 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $2.13 billion. On the bottom line, the average EPS estimate is $0.55.
Next year's average estimate for revenue is $8.94 billion. The average EPS estimate is $2.89.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,944 members out of 2,023 rating the stock outperform, and 79 members rating it underperform. Among 381 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 363 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 $47.57.
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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.