The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Peabody Energy beat expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue grew slightly and GAAP earnings per share dropped significantly.
Margins contracted across the board.
Peabody Energy logged revenue of $2.06 billion. The 13 analysts polled by S&P Capital IQ expected to see net sales of $1.97 billion on the same basis. GAAP reported sales were 1.1% higher than the prior-year quarter's $2.04 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 $0.51. The 21 earnings estimates compiled by S&P Capital IQ predicted $0.34 per share. GAAP EPS of $0.16 for Q3 were 84% lower than the prior-year quarter's $1.00 per share. (The prior-year quarter included -$0.01 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 26.7%, 160 basis points worse than the prior-year quarter. Operating margin was 14.0%, 450 basis points worse than the prior-year quarter. Net margin was 2.1%, 1,140 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.98 billion. On the bottom line, the average EPS estimate is $0.25.
Next year's average estimate for revenue is $8.03 billion. The average EPS estimate is $1.88.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 2,009 members out of 2,098 rating the stock outperform, and 89 members rating it underperform. Among 378 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 359 give Peabody Energy a green thumbs-up, and 19 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 $31.15.
Are you missing a major story in the energy space? Read about "One Stock to Own Before Nat Gas Act 2011 Becomes Law." Click here for instant access to this free report.
- Add Peabody Energy to My Watchlist.