So, the Wheels Came Off Alliance Resource Partners's Bus

Seth Jayson, The Motley Fool
Updated

Alliance Resource Partners (NAS: ARLP) reported earnings on July 26. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended June 30 (Q2), Alliance Resource Partners beat slightly on revenues and whiffed on earnings per share.

Compared to the prior-year quarter, revenue expanded. Non-GAAP earnings per share shrank significantly. GAAP earnings per share grew.


Margins grew across the board.

Revenue details
 Alliance Resource Partners tallied revenue of $553.6 million. The six analysts polled by S&P Capital IQ hoped for sales of $546.3 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
 EPS came in at $1.13. The seven earnings estimates compiled by S&P Capital IQ predicted $1.61 per share. Non-GAAP EPS of $1.13 for Q2 were 38% lower than the prior-year quarter's $1.83 per share. GAAP EPS of $1.96 for Q2 were 7.1% higher than the prior-year quarter's $1.83 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
 For the quarter, gross margin was 37.1%, 430 basis points better than the prior-year quarter. Operating margin was 20.9%, 100 basis points better than the prior-year quarter. Net margin was 13.3%, 40 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
 Next quarter's average estimate for revenue is $551.9 million. On the bottom line, the average EPS estimate is $1.53.

Next year's average estimate for revenue is $2.20 billion. The average EPS estimate is $6.55.

Investor sentiment
 The stock has a five-star rating (out of five) at Motley Fool CAPS, with 709 members out of 729 rating the stock outperform, and 20 members rating it underperform. Among 188 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 183 give Alliance Resource Partners a green thumbs-up, and five give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Alliance Resource Partners is outperform, with an average price target of $77.57.

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The article So, the Wheels Came Off Alliance Resource Partners's Bus 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. The Motley Fool recommends Alliance Resource Partners, L.P. 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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