Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Peabody Energy (NYS: BTU) fell as much as 11% in early trading but have recovered most of those losses throughout the day.
So what: Peabody released earnings this morning and there really wasn't a lot to complain about. Revenue rose 9% to $2.04 billion and adjusted earnings per share were $0.87, both beating estimates.
In other news, early in the day ArcelorMittal (NYS: MT) said it was pulling out of a joint bid with Peabody to purchase Macarthur Coal in Australia.
Now what: It appears the acquisition of Macarthur is moving forward as planned but this was definitely an unexpected announcement. A $5 billion acquisition is a lot for Peabody to swallow so we'll have to see if any changes ensue.
But earnings were very good so I don't see a big reason to jump ship today.
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At the time thisarticle was published Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.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.
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