The 10-second takeaway
For the quarter ended June 30 (Q2), Peabody Energy missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped. GAAP earnings per share contracted significantly.
Margins shrank across the board.
Peabody Energy chalked up revenue of $1.73 billion. The 10 analysts polled by S&P Capital IQ predicted revenue of $1.81 billion on the same basis. GAAP reported sales were 12% lower than the prior-year quarter's $1.96 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 $0.33. The 19 earnings estimates compiled by S&P Capital IQ forecast -$0.06 per share. GAAP EPS of $0.33 for Q2 were 56% lower than the prior-year quarter's $0.75 per share. (The prior-year quarter included -$0.03 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 16.7%, 950 basis points worse than the prior-year quarter. Operating margin was 1.2%, much worse than the prior-year quarter. Net margin was 5.2%, 520 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.83 billion. On the bottom line, the average EPS estimate is -$0.17.
Next year's average estimate for revenue is $7.32 billion. The average EPS estimate is -$0.25.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,973 members out of 2,064 rating the stock outperform, and 91 members rating it underperform. Among 320 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 302 give Peabody Energy a green thumbs-up, and 18 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 $25.85.
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