Alpha Natural Resources, Inc. (ANR) is scheduled to report its Q2 2012 results on August 8, 2012 before market opens. The Street expects EPS and revenue of ($0.33) loss and $1.78B, respectively.
In this article, I will recap the historical results of the company, its latest EPS estimates vs. surprises, the latest news from Alpha Natural, and the news from its closest competitors.
Recent EPS Actuals vs. Estimates
The company has failed to meet analysts' estimates in the last two quarters. In the last quarter it reported ($0.27) loss per share, failing to meet analyst estimates of ($0.06) loss.
The consensus EPS estimate is ($0.33) loss based on 26 analysts' estimates, down from $0.96 a year ago. Revenue estimates are $1.78B, up from $1.59B a year ago. The median target price by analysts for the stock is $18.00.
Average recommendation: Overweight
Analyst Upgrades and Downgrades
- On July 15, 2012, BMO Capital Markets downgraded the company from Outperform to Underperform.
- On May 30, 2012, Global Hunter Securities initiated Neutral rating for the company.
- On March 23, 2012, Howard Weil reiterated Market Outperform rating for the company.
- On February 14, 2012, Barclays Capital reiterated Overweight rating for the company.
- On February 6, 2012, Howard Weil reiterated Market Outperform rating for the company.
- On June 27, 2012, Alpha Natural Resources, Inc. announced that it has amended its $1.6 billion secured credit facility enhancing its financial flexibility.
- On June 8, 2012, Alpha Natural Resources, Inc. announced that it plans to curtail coal mining operations in its northern and southern Kentucky business units as continued market pressures and new regulations on coal-fired power plants make production from certain mines in those areas uneconomic.
- On May 16, 2012, Alpha Natural Resources announced the publication of its first sustainability report, "Fueling Progress." The report, developed through consultation with key stakeholders, focuses on issues of economic, social and environmental performance-each of which is critical to the company's ability to continue to grow and thrive.
- On May 14, 2012, Alpha Natural Resources announced the establishment of the Alpha Foundation for the Improvement of Mine Safety and Health, Inc. The Alpha Foundation is a non-profit organization whose mission is to improve mine health and safety through funding projects by qualified academic institutions, not-for-profit entities and individuals associated with those entities. Alpha will contribute a total of $48 million to the foundation.
- 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.
Arch Coal (ACI), Peabody Energy (BTU), CONSOL Energy (NYSE:CNX), James River Coal (JRCC), and Walter Energy (NYSE:WLT) are considered major competitors for Alpha Natural Resources and the table below provides the key metrics for these companies and the industry.
The chart below compares the stock price changes as a percentage for the selected companies for the last one year period.
Competitors' Latest Developments
- On August 1, 2012, Walter Energy Inc announced that it continues to forecast fiscal 2012 met coal production between 11.5 and 13.0 MMTs, of which an estimated 75% to 80% will be HCC and the remainder will be low-vol PCI.
- On July 26, 2012, CONSOL Energy announced that expects its net gas production to be between 157-159 Bcf for fiscal 2012. Third quarter 2012 gas production, net to CONSOL, is expected to be approximately 40-42 Bcf.
- On July 24, 2012, Peabody Energy Corp. announced that for third quarter of 2012, it expects adjusted EBITDA in the range of $350 to $450 million and adjusted diluted earnings per share (EPS) in the range of $0.20 to $0.45. According to I/B/E/S estimates, analysts were expecting the Company to report EBITDA of $530 million and EPS of $0.65 for third quarter of 2012.
- 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 July 2, 2012, CONSOL Energy Inc announced that it has sold its non-producing Northern Powder River Basin 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 and 25% pulverized coal injection.
- 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, 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 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 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 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 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 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 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.
The stock has a market capitalization of $1.52B and is currently trading at $6.89 with a 52 week range of $5.75 - $35.15. The stock's year-to-date performance has been -66.28%. It is currently trading below 20, 50 and 200 SMA.
Sources: Yahoo Finance, Google Finance, Marketwatch, Finviz, Reuters.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.