Arch Coal Earnings Preview
Arch Coal (NYS: ACI) came in under analyst's estimates last quarter, but now have a chance to fix things this quarter. The company will unveil its latest earnings on Friday. Arch Coal is a coal producer in the United States, that sells coal to power plants, steel mills, and industrial facilities.
What analysts say:
- Buy, sell, or hold?: The majority of analysts back Arch Coal as a buy. But with 55% of analysts rating it a buy, Arch Coal is still below the mean analyst rating of its nearest 10 competitors, which average 62.4% buys. Analysts don't like Arch Coal as much as competitor Alliance Holdings GP overall. Two out of three analysts rate Alliance Holdings GP a buy compared to 11 of 20 for Arch Coal. While analysts still rate the stock a moderate buy, they are a little more optimistic about it compared to three months ago.
- Revenue forecasts: On average, analysts predict $1.3 billion in revenue this quarter. That would represent a rise of 55.6% from the year-ago quarter.
- Wall Street earnings expectations: The average analyst estimate is earnings of $0.31 per share. Estimates range from $0.21 to $0.48.
What our community says:
CAPS All-Stars are strongly backing the stock, with 97.7% awarding it an outperform rating. Most of the community concurs with the All-Stars, with 96.1% granting it a rating of outperform. Fools have embraced Arch Coal and haven't been shy with their opinions lately, logging 445 posts in the past 30 days. Even with a robust four out of five stars, Arch Coal's CAPS rating falls a little short of the community's upbeat outlook.
Arch Coal's income has fallen year-over-year by an average of 78.7% over the past five quarters. The company's gross margin shrank by 5 percentage points in the last quarter. Revenue rose 37% while cost of sales rose 46.2% to $952.9 million from a year earlier.
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At the time this article was published