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Arch Resources' (ARCH) Q1 Earnings Beat, 2022 Volume Up

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Arch Resources Inc. (ARCH - Free Report) reported first-quarter 2021 operating earnings per share (EPS) of $12.89, which surpassed the Zacks Consensus Estimate of $9.76 by 32%. In the year-ago quarter, the company incurred a loss of 40 cents per share.

Revenues

Total revenues were $867.9 million, beating the Zacks Consensus Estimate of $649 million by 33.7%. The top line also improved 142.8% from $357.5 million in the year-ago quarter.

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 1.5 million tons of coal, down 11.8% from the prior-year figure of 1.8 million tons. It recorded cash margins worth $167.48 per ton compared with $24.13 in the year-ago quarter, primarily due to a higher sales price.

During the first quarter, the metallurgical segment's realized price increased nearly 30% on a sequential basis, reflecting continuing strength in global metallurgical coal markets.

In the Thermal segment, the company sold 18.2 million tons of coal, up 47.9% from the prior-year figure of 12.3 million tons. It recorded a cash margin of $5.42 per ton compared with 98 cents in the prior-year period.

Financial Highlights

Cash and cash equivalents as of Jan 31, 2022 were $318.7 million compared with $325.2 million on Dec 31, 2021.

Long-term debt as of Mar 31, 2022 was $132.3 million compared with $337.6 million as of Dec 31, 2021.

Cash provided by operating activities in the first three months of 2022 was $292.9 million compared with $5.16 million in the comparable year-ago period.

Guidance

Arch Resources received a commitment for 5.8 million tons of coking coal volume for 2022. Total thermal coal committed for 2022 is 80.4 million tons. ARCH expects total sales volume in the range of 83.0-87.8 million tons for 2022. Volumes are a tad higher than that announced during the fourth-quarter earnings call.

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

Zacks Rank

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

Upcoming Releases

Peabody Energy Corporation (BTU - Free Report) is scheduled to announce first-quarter 2022 results on Apr 28. The Zacks Consensus Estimate for earnings per share is pegged at $2.16.

Peabody Energy reported an average surprise of 80.8% in the last four quarters. The Zacks Consensus Estimate for 2022 earnings per share indicates year-over-year growth of 150%.

CONSOL Energy Inc. (CEIX - Free Report) is scheduled to announce first-quarter 2022 results on May 3. The Zacks Consensus Estimate for earnings per share is pegged at $1.90.

CONSOL Energy reported an average surprise of 85.7% in the last four quarters. The Zacks Consensus Estimate for 2022 earnings per share indicates year-over-year growth of 469.4%.

Warrior Met Coal, Inc. (HCC - Free Report) is scheduled to announce first-quarter 2022 results on May 5. The Zacks Consensus Estimate for earnings per share is pegged at $2.42.

Warrior Met Coal reported an average surprise of 84.5% in the last four quarters. The Zacks Consensus Estimate for 2022 earnings per share indicates year-over-year growth of 263.1%.

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