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Arch Resources (ARCH) Q4 Earnings Beat Estimates, Sales Rise

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Arch Resources Inc. (ARCH - Free Report) reported fourth-quarter 2021 operating earnings per share (EPS) of $13.19, which surpassed the Zacks Consensus Estimate of $13.03 by 1.2%.

Total Revenues

Total revenues were $805.6 million, beating the Zacks Consensus Estimate of $687 million by 17.3%. The top line improved 123.3% from $360.5 million in the year-ago quarter.

Arch Resources reported total revenues of $2,208 million in 2021, up 50.4% from $1,467.6 million in 2020.

Arch Resources Inc. Price, Consensus and EPS Surprise

Arch Resources Inc. Price, Consensus and EPS Surprise

Arch Resources Inc. price-consensus-eps-surprise-chart | Arch Resources Inc. Quote

Highlights of the Release

In the Metallurgical segment, ARCH sold 2 million tons of coal, up 11.1% from the prior-year figure of 1.8 million tons. It recorded cash margins worth $111.88 per ton compared with $8.59 in the year-ago quarter primarily due to a higher sales price.

In the Thermal segment, the company sold 18.8 million tons of coal, up 33.3% from the prior-year figure of 14.1 million tons. It recorded a cash margin of $3.57 per ton compared with 98 cents in the prior-year period.

In the fourth quarter, Arch Resources restored the balance sheet to the pre-pandemic strength by paying debts worth $277 million.

Financial Highlights

Cash and cash equivalents as of Dec 31, 2021 were $325.2 million compared with $187.5 million on Dec 31, 2020.

Long-term debt as of Dec 31, 2021 was $337.6 million compared with $477.2 million as of Dec 31, 2020.

Cash provided by operating activities in 2021 was $238.3 million compared with $61.1 million in the year-ago period.

Guidance

Arch Resources received a commitment for 3.9 million tons of coking coal volume for 2022. The total thermal coal committed for 2022 is 78.8 million tons. ARCH expects the total sales volume in the range of 81.0-87.8million tons for 2022.

Arch Resources’ 2022 capital expenditure guidance is in the range of $150-$160 million.

Zacks Rank

Arch Resources currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Upcoming Releases

APA Corporation (APA - Free Report) is slated to report fourth-quarter 2021 earnings on Feb 21 after market close. The Zacks Consensus Estimate for the fourth quarter’s EPS is pegged at $1.42.

APA Corp’s long-term (three to five years) earnings growth is currently pegged at 20.40%. The Zacks Consensus Estimate for APA’s 2022 earnings implies year-over-year growth of 64.32%.

Ameresco Inc. (AMRC - Free Report) is slated to report fourth-quarter 2021 earnings on Feb 28 after market close. The Zacks Consensus Estimate for the fourth quarter’s EPS is pegged at 44 cents.

Ameresco’s long-term earnings growth is currently pegged at 18.35%. The Zacks Consensus Estimate for AMRC’s 2022 earnings implies year-over-year growth of 26.46%.

Canadian Natural Resources Limited (CNQ - Free Report) is slated to report fourth-quarter 2021 earnings on Mar 3 before market open. The Zacks Consensus Estimate for the fourth quarter’s EPS is pegged at $1.58.

Canadian National’s long-term earnings growth is currently pegged at 14.17%. The Zacks Consensus Estimate for CNQ’s 2022 earnings implies year-over-year growth of 24.66%.

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