Coal mining company Peabody Energy (NYSE: BTU) will be announcing earnings results this Wednesday before market hours. Here’s what to look for.
Peabody Energy beat analysts’ revenue expectations last quarter, reporting revenues of $973.3 million, up 3.9% year on year. It was a softer quarter for the company, with a significant miss of analysts’ EPS estimates. It reported a year-on-year other production decline of 26.6%.
Is Peabody Energy a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Peabody Energy’s revenue to grow 12.8% year on year, a reversal from the 14.6% decrease it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Peabody Energy has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Peabody Energy’s peers in the upstream & integrated segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Weatherford’s revenues decreased 8.2% year on year, beating analysts’ expectations by 3.4%, and World Kinect reported revenues up 50.3%, topping estimates by 27.7%. Weatherford traded up 4.5% following the results while World Kinect was also up 5.2%.
Read our full analysis of Weatherford’s results here and World Kinect’s results here.
There has been positive sentiment among investors in the upstream & integrated segment, with share prices up 2.2% on average over the last month. Peabody Energy is down 1.3% during the same time and is heading into earnings with an average analyst price target of $32.58 (compared to the current share price of $22.98).
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