Will Arch Coal Beat These Analyst Estimates?

Before you go, we thought you'd like these...
Before you go close icon

Arch Coal (NYS: ACI) is expected to report Q2 earnings on July 27. 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 grow 2.4% and EPS will shrink to a loss.

The average estimate for revenue is $1.01 billion. On the bottom line, the average EPS estimate is -$0.17.


Revenue details
Last quarter, Arch Coal reported revenue of $1.04 billion. GAAP reported sales were 19% higher than the prior-year quarter's $872.9 million.

anImage

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 -$0.04. GAAP EPS of $0.01 for Q1 were 97% lower than the prior-year quarter's $0.34 per share.

anImage

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 18.2%, 690 basis points worse than the prior-year quarter. Operating margin was 5.2%, 650 basis points worse than the prior-year quarter. Net margin was 0.1%, 630 basis points worse than the prior-year quarter.

Looking ahead
The full year's average estimate for revenue is $4.07 billion. The average EPS estimate is -$0.52.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 1,519 members out of 1,599 rating the stock outperform, and 80 members rating it underperform. Among 309 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 292 give Arch Coal a green thumbs-up, and 17 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 $16.55.

How did Arch Coal treat you during the oil spike in 2008 and the subsequent bust? More important, what are you doing to prepare for the next spike that some experts believe may be just around the corner? Prepare yourself with a well-positioned energy stock we profile in "The Only Energy Stock You'll Ever Need." Click here for instant access to this free report.

The article Will Arch Coal Beat These Analyst Estimates? originally appeared on Fool.com.

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 ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. 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.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners