The 10-second takeaway
For the quarter ended March 31 (Q1), Patriot Coal missed estimates on revenues and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted and GAAP loss per share increased.
Gross margins grew, operating margins dropped, and net margins contracted.
Patriot Coal chalked up revenue of $502.6 million. The nine analysts polled by S&P Capital IQ predicted revenue of $552.5 million on the same basis. GAAP reported sales were 13% lower than the prior-year quarter's $577.0 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 -$0.25. The 13 earnings estimates compiled by S&P Capital IQ averaged -$0.40 per share. GAAP EPS were -$0.82 for Q1 against -$0.17 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 9.4%, 130 basis points better than the prior-year quarter. Operating margin was -5.7%, 710 basis points worse than the prior-year quarter. Net margin was -15.0%, 1,230 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $546.2 million. On the bottom line, the average EPS estimate is -$0.36.
Next year's average estimate for revenue is $2.21 billion. The average EPS estimate is -$1.51.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 840 members out of 877 rating the stock outperform, and 37 members rating it underperform. Among 176 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 170 give Patriot Coal a green thumbs-up, and six give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Patriot Coal is hold, with an average price target of $9.41.
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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.