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What: Shares of coal miner Peabody Energy
So what: During the second quarter, revenue rose slightly to $2.0 billion, just short of the $2.06 billion analysts had expected. On the bottom line, results were even worse, with net income falling 28% to $204.7 million. Excluding special items, earnings per share were $0.51, just $0.02 below estimates, but in the third quarter, management expects earnings per share of $0.20 to $0.45, well below the current $0.65 estimate.
Now what: Peabody is the last of the coal companies to report a significant profit, but even that is evaporating. Coal stocks have been crushed all year on falling demand, and Patriot Coal's bankruptcy earlier this month was a sign of things to come for some in the industry. Peabody is nowhere near that fate right now, but with trends heading in the wrong direction it looks like a value trap, and I certainly wouldn't be a buyer today.
Interested in more info on Peabody Energy? Add it to your Watchlist.
Fool contributor Travis Hoium has no position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings, or follow his CAPS picks at TMFFlushDraw.
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