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What's in Store for Arch Resources' (ARCH) Q3 Earnings?
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Arch Resources. (ARCH - Free Report) is scheduled to release third-quarter 2020 results on Oct 22, before the market opens. This coal producer delivered a negative earnings surprise of 1.2% in the last reported quarter.
Let’s discuss the factors that are likely to get reflected in the upcoming quarterly results.
Factors to Note
Arch Resources has been executing the cash preservation plan, which is likely to have boosted cash flow and helped it to lower overhead and labor costs in the third quarter.
Arch Resources expects an incremental $30-$35 million in additional receipts for the second half of 2020. The receipts are associated with land settlement and the ongoing payroll tax deferrals.
However, at third quarter-end, the company decided to terminate its proposed thermal asset joint venture with Peabody Energy (BTU - Free Report) , following the U.S. District Court's ruling to block the transaction. This is no doubt a big blow to the company’s prospects.
Expectations
The Zacks Consensus Estimate for third-quarter earnings and revenues is pegged at ($1.28) per share and $364 million, respectively. The projected revenues and earnings indicate a decrease of 131.8%, and 41.2%, respectively, from the year-ago reported figures.
What Our Quantitative Model Predicts
Our proven model does not conclusively predict an earnings beat for Arch Resources this time around. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to surpass estimates. That is not the case here as you will see below.
Earnings ESP: The company’s Earnings ESP is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Investors can consider the following players from the same sector that have the right combination of elements to post an earnings beat in the to-be-reported quarter.
Range Resources Corporation (RRC - Free Report) is set to release third-quarter 2020 results on Oct 29. It has an Earnings ESP of +9.04% and a Zacks Rank #3.
Linde (LIN - Free Report) is set to release third-quarter 2020 results on Nov 5. It has an Earnings ESP of +1.38% and a Zacks Rank #2.
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Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early. See the 5 high-tech stocks now>>
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What's in Store for Arch Resources' (ARCH) Q3 Earnings?
Arch Resources. (ARCH - Free Report) is scheduled to release third-quarter 2020 results on Oct 22, before the market opens. This coal producer delivered a negative earnings surprise of 1.2% in the last reported quarter.
Let’s discuss the factors that are likely to get reflected in the upcoming quarterly results.
Factors to Note
Arch Resources has been executing the cash preservation plan, which is likely to have boosted cash flow and helped it to lower overhead and labor costs in the third quarter.
Arch Resources expects an incremental $30-$35 million in additional receipts for the second half of 2020. The receipts are associated with land settlement and the ongoing payroll tax deferrals.
However, at third quarter-end, the company decided to terminate its proposed thermal asset joint venture with Peabody Energy (BTU - Free Report) , following the U.S. District Court's ruling to block the transaction. This is no doubt a big blow to the company’s prospects.
Expectations
The Zacks Consensus Estimate for third-quarter earnings and revenues is pegged at ($1.28) per share and $364 million, respectively. The projected revenues and earnings indicate a decrease of 131.8%, and 41.2%, respectively, from the year-ago reported figures.
What Our Quantitative Model Predicts
Our proven model does not conclusively predict an earnings beat for Arch Resources this time around. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to surpass estimates. That is not the case here as you will see below.
Earnings ESP: The company’s Earnings ESP is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Currently, Arch Resources carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Arch Coal Inc. Price and EPS Surprise
Arch Coal Inc. price-eps-surprise | Arch Coal Inc. Quote
Stocks to Consider
Investors can consider the following players from the same sector that have the right combination of elements to post an earnings beat in the to-be-reported quarter.
Range Resources Corporation (RRC - Free Report) is set to release third-quarter 2020 results on Oct 29. It has an Earnings ESP of +9.04% and a Zacks Rank #3.
Linde (LIN - Free Report) is set to release third-quarter 2020 results on Nov 5. It has an Earnings ESP of +1.38% and a Zacks Rank #2.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>