Alpha Natural Resources
The 10-second takeaway
For the quarter ended March 31 (Q1), Alpha Natural Resources beat slightly on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share dropped to a loss.
Margins shrank across the board.
Alpha Natural Resources notched revenue of $1.93 billion. The 13 analysts polled by S&P Capital IQ predicted revenue of $1.90 billion on the same basis. GAAP reported sales were 71% higher than the prior-year quarter's $1.13 billion.
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 -$0.27. The 24 earnings estimates compiled by S&P Capital IQ averaged -$0.06 per share. GAAP EPS were -$0.13 for Q1 versus $0.41 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 15.8%, 890 basis points worse than the prior-year quarter. Operating margin was -1.5%, 1,060 basis points worse than the prior-year quarter. Net margin was -1.5%, 590 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.84 billion. On the bottom line, the average EPS estimate is -$0.24.
Next year's average estimate for revenue is $7.53 billion. The average EPS estimate is -$0.77.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 853 members out of 897 rating the stock outperform, and 44 members rating it underperform. Among 178 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 165 give Alpha Natural Resources a green thumbs-up, and 13 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Alpha Natural Resources is outperform, with an average price target of $25.20.
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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.