Alliance Resource Partners
The 10-second takeaway
For the quarter ended June 30 (Q2), Alliance Resource Partners beat expectations on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share shrank.
Gross margins contracted, operating margins dropped, and net margins expanded.
Alliance Resource Partners logged revenue of $529.9 million. The six analysts polled by S&P Capital IQ anticipated a top line of $515.4 million on the same basis. GAAP reported sales were 16% higher than the prior-year quarter's $457.9 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 $1.83. The seven earnings estimates compiled by S&P Capital IQ forecast $1.67 per share. GAAP EPS of $1.83 for Q2 were 10% lower than the prior-year quarter's $2.04 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 32.8%, 200 basis points worse than the prior-year quarter. Operating margin was 19.9%, 350 basis points worse than the prior-year quarter. Net margin was 18.0%, 140 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $557.9 million. On the bottom line, the average EPS estimate is $1.80.
Next year's average estimate for revenue is $2.10 billion. The average EPS estimate is $6.87.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 710 members out of 732 rating the stock outperform, and 22 members rating it underperform. Among 181 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 175 give Alliance Resource Partners 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 Alliance Resource Partners is outperform, with an average price target of $78.86.
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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. The Motley Fool has no positions in the stocks mentioned above. Motley Fool newsletter services recommend Alliance Resource Partners. 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.