Coal ETF In Focus On Sluggish Earnings [Peabody Energy Corporation, CONSOL Energy Inc., Market Vectors-Coal ETF]

coalRecently, two coal producers came up with muted fourth quarter 2013 earnings. One company Peabody (NYSE:BTU) – reported on January 30 – managed to beat the Zacks Consensus Estimate for earnings but couldn’t make it on the top line. Another producer, Consol Energy (NYSE:CNX), reported a big-time miss on both lines the very next day.

Peabody 4Q4 Earnings in Detail

Coal producer Peabody Energy broke even in the fourth quarter getting the better of the Zacks Consensus Estimate of a loss of $0.05 and the year-ago loss of $1.12 per share. However, total revenue of $1.74 billion was down 13.6% year over year and fell shy of the Zacks Consensus Estimate of $1.77 billion. Despite higher volume, lower realized prices in Australia and the U.S. led to the miss.

Poor sales numbers might have pushed Peabody into the red in the key trading session. To add to this, a muted guidance also weakened investor confidence.

The coal producer fell short of consensus estimate on the bottom line. Peabody predicted its bottom line in the range of a loss per share of $0.10 to earnings of $0.14 per share while analysts were expecting the same at a loss of $0.05 per share.

Consol’s Q4 Earnings in Details

Diversified fuel producer Consol Energy‘s adjusted earnings of $0.03 per share for the fourth quarter missed the Zacks Consensus Estimate of $0.07. Its revenues also fell 11.7% to $0.82 billion and lagged the Zacks Consensus Estimate of $1.15 billion by 28.6%.

The average sales price for low-volatile metallurgical coal tumbled 36.4% while the sales price for high-volatile metallurgical coal slumped 15.3%. However, lower realized prices were also noticed in the company’s gas division.

Market Impact

Though Peabody’s shares fell 2.88% soon after the earnings announcement, its shares gained some strength (up 0.95%) the following day. On the other hand, Consol energy also fell 1.45% in the key trading session but added 0.03% in after-hours trading.

Both the companies have decent exposure in Market Vectors Coal ETF(NYSEARCA:KOL) which nudged up 0.17% at the close of the week. Below, we have highlighted the fund in detail for those curious as to how the broad industry has been holding up (read: Coal ETF Investing 101).

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