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

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

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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.

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