The 10-second takeaway
For the quarter ended March 31 (Q1), Arch Coal missed estimates on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share dropped significantly.
Margins shrank across the board.
Arch Coal reported revenue of $1.04 billion. The 13 analysts polled by S&P Capital IQ expected a top line of $1.13 billion on the same basis. GAAP reported sales were 19% higher than the prior-year quarter's $872.9 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at -$0.04. The 22 earnings estimates compiled by S&P Capital IQ forecast $0.20 per share. GAAP EPS of $0.01 for Q1 were 97% lower than the prior-year quarter's $0.34 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 18.2%, 690 basis points worse than the prior-year quarter. Operating margin was 4.9%, 680 basis points worse than the prior-year quarter. Net margin was 0.1%, 630 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.14 billion. On the bottom line, the average EPS estimate is $0.19.
Next year's average estimate for revenue is $4.57 billion. The average EPS estimate is $0.79.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,487 members out of 1,552 rating the stock outperform, and 65 members rating it underperform. Among 345 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 334 give Arch Coal a green thumbs-up, and 11 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Arch Coal is hold, with an average price target of $16.55.
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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.