The 10-second takeaway
For the quarter ended June 30 (Q2), Peabody Energy missed estimates on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue was unchanged and GAAP earnings per share dropped significantly.
Margins contracted across the board.
Peabody Energy logged revenue of $2.00 billion. The 13 analysts polled by S&P Capital IQ looked for net sales of $2.06 billion on the same basis. GAAP reported sales were 0.5% lower than the prior-year quarter's $2.01 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 $0.73. The 24 earnings estimates compiled by S&P Capital IQ anticipated $0.53 per share. GAAP EPS of $0.75 for Q2 were 29% lower than the prior-year quarter's $1.05 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 25.9%, 470 basis points worse than the prior-year quarter. Operating margin was 14.1%, 760 basis points worse than the prior-year quarter. Net margin was 10.2%, 400 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 $0.56.
Next year's average estimate for revenue is $8.51 billion. The average EPS estimate is $2.39.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 2,001 members out of 2,083 rating the stock outperform, and 82 members rating it underperform. Among 339 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 317 give Peabody Energy a green thumbs-up, and 22 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 $41.42.
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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.
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