Alpha Natural Resources
The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Alpha Natural Resources missed estimates on revenues and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted significantly and GAAP earnings per share dropped to a loss.
Margins dropped across the board.
Revenue details
Alpha Natural Resources reported revenue of $1.63 billion. The 16 analysts polled by S&P Capital IQ expected to see a top line of $1.68 billion on the same basis. GAAP reported sales were 29% lower than the prior-year quarter's $2.30 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS details
EPS came in at -$0.16. The 21 earnings estimates compiled by S&P Capital IQ forecast -$0.44 per share. GAAP EPS were -$0.21 for Q3 against $0.29 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
Margin details
For the quarter, gross margin was 13.5%, 710 basis points worse than the prior-year quarter. Operating margin was -4.3%, 1,370 basis points worse than the prior-year quarter. Net margin was -2.8%, 570 basis points worse than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $1.64 billion. On the bottom line, the average EPS estimate is -$0.52.
Next year's average estimate for revenue is $7.06 billion. The average EPS estimate is -$1.50.
Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 871 members out of 926 rating the stock outperform, and 55 members rating it underperform. Among 170 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 154 give Alpha Natural Resources a green thumbs-up, and 16 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Alpha Natural Resources is outperform, with an average price target of $11.08.
Is Alpha Natural Resources the right energy stock for you? Read about a handful of timely, profit-producing plays on expensive crude in "3 Stocks for $100 Oil." Click here for instant access to this free report.
- Add Alpha Natural Resources to My Watchlist.