Arch Coal Shares Popped: What You Need to Know
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 miner Arch Coal (NYS: ACI) jumped 10% after the company released disappointing earnings. Yes, you read that right.
So what: Third-quarter revenue rose 37% to $1.20 billion, but fell below estimates of $1.22 billion. Earnings per share was also disappointing at $0.08 per share, well below the $0.13 analysts were expecting.
Now what: How can your stock go up after a disappointing earnings announcement? For one thing, much of the bad news was already priced into the stock, and when management reaffirmed full-year guidance and announced some recent contracts, the market got excited. The company said that it expects exports to be strong as Asian steelmakers continue their demand, so the future might be brighter than the market thought a few weeks ago.
Interested in more info on Arch Coal? Add it to your watchlist byclicking here.
At the time this article 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.