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Peabody Energy Corporation (BTU) is scheduled to report its Q2 2012 results on July 24, 2012, before the market opens. The street expects EPS and revenue of $0.53 and $2.06B, respectively.

In this article I will recap the historical results of the company, its latest EPS estimates vs. surprises, the latest news from BTU and the news from its closest competitors.

Peabody Energy Corp. Revenue and Net Income History

Recent EPS Actuals vs. Estimates

In the last quarter BTU reported $0.67 EPS, beating analyst estimates of $0.53.

Peabody Energy Corp. EPS Historical Results vs Estimates

The consensus EPS estimate is $0.53 based on 26 analysts' estimates, down from $1.11 a year ago. Revenue estimates are $2.06B, up from $2.01B a year ago. The median target price by analysts for the stock is $40.00.

Average recommendation: Overweight

Source: Marketwatch

Analyst Upgrades and Downgrades

  • On March 23, 2012, Howard Weil reiterated Market Perform rating for the company.
  • On February 14, 2012, Barclays Capital reiterated Overweight rating for the company.

Latest News

  • On July 17, 2012, Dow Jones reported that Peabody Energy Corp. has entered an agreement with Kinder Morgan Energy Partners to expand the Gulf Coast coal-export platform for Peabody's Colorado, Powder River Basin and Illinois Basin coal products.
  • On April 19, 2012, Peabody Energy Corp. announced that it is targeting second quarter 2012 EBITDA in the range of $450 to $550 million and adjusted diluted earnings per share (EPS) of $0.40 to $0.65. Second quarter targets reflect expected lower realized metallurgical and thermal coal pricing along with reduced U.S. shipments.
  • On March 8, 2012, Peabody Energy Corp. announced a new global organizational structure, with the creation of geographic business units in the Americas, Australia and Asia to reflect the growing size and scope of Peabody's global footprint.
  • On January 26, 2012, Peabody Energy Corp. announced that the Board of Directors has declared a regular quarterly dividend on its common stock of $0.085 per share. The dividend is payable on March 1, 2012, to holders of record on February 9, 2012.
  • On January 24, 2012, Peabody Energy Corp. announced that it is targeting first quarter 2012 EBITDA, including Macarthur, in the range of $500 to $600 million and adjusted diluted earnings per share of $0.50 to $0.75.

Competitors

Arch Coal (ACI), Alpha Natural Resources (ANR), CONSOL Energy (CNX), and Walter Energy (WLT) are considered major competitors for Peabody Energy and the table below provides the key metrics for these companies and the industry.

Peabody Energy Corp. key ratio comparison with direct competitors

The chart below compares the stock price changes as a percentage for the selected companies and S&P 500 index for the last one year period.

(click to enlarge)BTU Chart

BTU data by YCharts

Competitors' Latest Development

  • On July 2, 2012, CONSOL Energy Inc announced that it has sold its non-producing Northern Powder River Basin (PRB) assets for $170 million in cash to Cloud Peak Energy.
  • On June 29, 2012, CONSOL Energy Inc announced that it has issued notice under the Worker Adjustment and Retraining Notification Act (WARN) of a layoff at its Fola Operations near Bickmore, West Virginia.
  • On June 28, 2012, Walter Energy Inc announced that for the second quarter of 2012, it expects met coal production to be approximately 2.8 million metric tons (MMTs).For fiscal 2012, it expects met coal production to be between 11.5 and 13 MMTs, with approximately 75% of annual production being high-margin hard coking coal (HCC) and 25% pulverized coal injection (PCI).
  • On June 22, 2012, Reuters reported that Arch Coal, Inc. will cut about a tenth of its workforce, or 750 jobs, as it closes three higher-cost mining complexes and associated plants in response to the weak U.S. market for thermal coal.
  • On June 1, 2012, Walter Energy Inc announced that it has hired William "Bill" Harvey as its Chief Financial Officer (CFO), effective July 9, 2012.
  • On May 17, 2012, Arch Coal, Inc. announced that it closed on a new $1.4 billion term loan that was upsized from the previously announced $1 billion due to investor interest.
  • On May 7, 2012, Law Firm of Klayman & Toskes announced that it is investigating claims on behalf of Arch Coal, Inc shareholders who sustained investment losses due to an over-concentration of Arch Coal stock.
  • On April 16, 2012, CONSOL Energy Inc announced that for fiscal 2012, it expects gas production to be approximately 157 - 159 Bcf and for the second quarter of 2012 it expects gas production to be approximately 37 - 38 Bcf, or slightly less than the just-ended quarter.
  • On April 11, 2012, Alpha Natural Resources, Inc. announced the appointment of Paul Vining to the position of president, adding to his current role as chief commercial officer of the Company.
  • On March 20, 2012, Alpha Natural Resources, Inc. announced that its chairman of the board, Michael J. Quillen, has chosen not to stand for re-election at the Company's 2012 annual meeting of stockholders scheduled on May 17, 2012 and will retire as chairman.
  • On March 17, 2012, Glancy Binkow & Goldberg LLP announced that all purchasers of the common stock of Walter Energy Inc between April 20, 2011 and September 21, 2011, inclusive (the Class Period), have until March 26, 2012 to file a motion with the Court to be appointed as Lead Plaintiff.
  • On March 10, 2012, Glancy Binkow & Goldberg LLP announced that a class action lawsuit has been filed in the United States District Court, Northern District of Alabama, on behalf of purchasers of the common stock of Walter Energy, Inc. between April 20, 2011 and September 21, 2011, inclusive (the Class Period), alleging violations of the Securities Exchange Act of 1934.
  • On March 8, 2012, Law Offices of Howard G. Smith announced that a class action lawsuit has been filed on behalf of purchasers of the common stock of Walter Energy, Inc., between April 20, 2011, and September 21, 2011, inclusive (the "Class Period"), seeking to pursue remedies under the Securities Exchange Act of 1934.
  • On March 7, 2012, Rigrodsky & Long, P.A. announced that a complaint has been filed in the United States District Court for the Northern District of Alabama, Southern Division on behalf of all persons or entities that purchased the common stock of Walter Energy, Inc., between April 20, 2011, and September 21, 2011, (Class Period), alleging violations of the Securities Exchange Act of 1934 (Complaint).
  • On February 27, 2012, Arch Coal, Inc. announced that its Chairman and Chief Executive Officer, Steven F. Leer, will retire as CEO effective April 26, 2012, the date of the Company's annual shareholders meeting.
  • On February 23, 2012, Dyer & Berens LLP announced that it has filed a class action lawsuit in the United States District Court for the Northern District of Alabama on behalf of purchasers of the common stock of Walter Energy, Inc. (Walter or the Company) between April 20, 2011 and September 21, 2011, inclusive (the Class Period).
  • On February 21, 2012, Walter Energy Inc announced that it anticipates fiscal 2012 met coal production will be between 11.5 MMTs and 13.0 MMTs of which approximately 75% will be HCC and 25% will be low-vol PCI.

Technical Overview


The stock has a market capitalization of $6.09B and is currently trading at $22.35 with a 52 week range of $20.67 - $61.81. The stock's year-to-date performance has been -32.15%. It is currently trading below 20, 50 and 200 SMA. It has been trading in a downtrend since November 2011.

Sources: Yahoo Finance, Google Finance, Marketwatch, Finviz, Reuters.

Source: Earnings Preview: Peabody Energy Corporation