We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Why Is Arch Resources (ARCH) Up 20.1% Since Last Earnings Report?
Read MoreHide Full Article
A month has gone by since the last earnings report for Arch Resources (ARCH - Free Report) . Shares have added about 20.1% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Arch Resources due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Arch Resources Inc. 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.
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.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month.
The consensus estimate has shifted -14.39% due to these changes.
VGM Scores
At this time, Arch Resources has an average Growth Score of C, a grade with the same score on the momentum front. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. Notably, Arch Resources has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Why Is Arch Resources (ARCH) Up 20.1% Since Last Earnings Report?
A month has gone by since the last earnings report for Arch Resources (ARCH - Free Report) . Shares have added about 20.1% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Arch Resources due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Arch Resources Q4 Earnings Beat Estimates, Sales Rise
Arch Resources Inc. 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.
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.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month.
The consensus estimate has shifted -14.39% due to these changes.
VGM Scores
At this time, Arch Resources has an average Growth Score of C, a grade with the same score on the momentum front. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. Notably, Arch Resources has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.