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.
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 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.
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.
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.
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.
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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. 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.