The Gory Details on Arch Coal's Double Miss
Arch Coal (NYS: ACI) reported earnings on May 1. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), Arch Coal missed estimates on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share dropped significantly.
Margins shrank across the board.
Arch Coal reported revenue of $1.04 billion. The 13 analysts polled by S&P Capital IQ expected a top line of $1.13 billion on the same basis. GAAP reported sales were 19% higher than the prior-year quarter's $872.9 million.
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 -$0.04. The 22 earnings estimates compiled by S&P Capital IQ forecast $0.20 per share. GAAP EPS of $0.01 for Q1 were 97% lower than the prior-year quarter's $0.34 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 18.2%, 690 basis points worse than the prior-year quarter. Operating margin was 4.9%, 680 basis points worse than the prior-year quarter. Net margin was 0.1%, 630 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.14 billion. On the bottom line, the average EPS estimate is $0.19.
Next year's average estimate for revenue is $4.57 billion. The average EPS estimate is $0.79.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,487 members out of 1,552 rating the stock outperform, and 65 members rating it underperform. Among 345 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 334 give Arch Coal a green thumbs-up, and 11 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.
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At the time this article was published 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.