The 10-second takeaway
For the quarter ended March 31 (Q1), Peabody Energy missed estimates on revenues and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank. Non-GAAP earnings per share shrank to a loss. GAAP earnings per share contracted to a loss.
Margins dropped across the board.
Peabody Energy reported revenue of $1.75 billion. The 12 analysts polled by S&P Capital IQ anticipated net sales of $1.80 billion on the same basis. GAAP reported sales were 14% lower 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 -$0.05. The 24 earnings estimates compiled by S&P Capital IQ forecast -$0.14 per share. Non-GAAP EPS were -$0.05 for Q1 compared to $0.67 per share for the prior-year quarter. GAAP EPS were -$0.09 for Q1 compared to $0.63 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 20.5%, 890 basis points worse than the prior-year quarter. Operating margin was 5.9%, much worse than the prior-year quarter. Net margin was -1.3%, 980 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.85 billion. On the bottom line, the average EPS estimate is -$0.04.
Next year's average estimate for revenue is $7.50 billion. The average EPS estimate is $0.14.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,977 members out of 2,065 rating the stock outperform, and 88 members rating it underperform. Among 318 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 302 give Peabody Energy 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 Peabody Energy is outperform, with an average price target of $30.41.
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