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What Does Wall Street See for Peabody Energy's Q2?

By Seth Jayson – Updated Apr 10, 2017 at 12:47PM

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Checking expectations

Peabody Energy (NYSE: BTU) is expected to report Q2 earnings on July 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 Peabody Energy's revenues will compress -8.3% and EPS will shrink to a loss.

The average estimate for revenue is $1.83 billion. On the bottom line, the average EPS estimate is -$0.03.

Revenue details
Last quarter, Peabody Energy booked revenue of $1.75 billion. GAAP reported sales were 13% lower than the prior-year quarter's $2.02 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 -$0.05. GAAP EPS were -$0.09 for Q1 against $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.

Recent performance
For the preceding quarter, gross margin was 20.5%, 910 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.

Looking ahead

The full year's average estimate for revenue is $7.41 billion. The average EPS estimate is -$0.13.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,970 members out of 2,061 rating the stock outperform, and 91 members rating it underperform. Among 311 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 292 give Peabody Energy a green thumbs-up, and 19 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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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 position in any of the stocks mentioned. 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.

Stocks Mentioned

Peabody Energy Corporation Stock Quote
Peabody Energy Corporation
BTU

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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