Please ensure Javascript is enabled for purposes of website accessibility

What Does Wall Street See for Arch Coal's Q1?

By Seth Jayson - Updated Apr 10, 2017 at 1:48PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Checking expectations

Arch Coal (NYSE: ACI) is expected to report Q1 earnings on April 23. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Arch Coal's revenues will shrink -11.4% and EPS will remain in the red.

The average estimate for revenue is $921.3 million. On the bottom line, the average EPS estimate is -$0.33.

Revenue details
Last quarter, Arch Coal logged revenue of $968.2 million. GAAP reported sales were 27% lower than the prior-year quarter's $1.23 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at -$0.42. GAAP EPS were -$1.40 for Q4 versus $0.33 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 17.8%, 520 basis points worse than the prior-year quarter. Operating margin was -0.4%, much worse than the prior-year quarter. Net margin was -33.0%, much worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $3.84 billion. The average EPS estimate is -$1.14.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 1,473 members out of 1,552 rating the stock outperform, and 79 members rating it underperform. Among 288 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 272 give Arch Coal 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 Arch Coal is hold, with an average price target of $8.29.

Can your portfolio provide you with enough income to last through retirement? You'll need more than Arch Coal. Learn how to maximize your investment income and "Secure Your Future With 9 Rock-Solid Dividend Stocks." Click here for instant access to this free report.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/17/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.