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Peabody Energy (BTU) to Report Q2 Earnings: What's in Store?

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Peabody Energy Corporation (BTU - Free Report) is scheduled to release second-quarter 2023 results on Jul 27, before market open. The company delivered an earnings surprise of 7.7% in the last reported quarter.

Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.

Factors to Consider

Peabody Energy’s second-quarter earnings are expected to have been boosted by the company’s share repurchase program and surety agreement to limit collateral exposure and remove other restrictions.

Its continued debt reduction is likely to have decreased capital financing costs and raised profitability. BTU will continue to benefit from its diverse asset base and low-cost U.S. thermal segments.

The company is expected to have benefited from increased tons of coal sold in the to-be-reported quarter. BTU’s Powder River Basin Mining unit is likely to have made a major contribution to its total sales. Despite increased tons of coal sold, the company’s revenues might have been negatively impacted by a decrease in average selling price.

Q2 Expectations

The Zacks Consensus Estimate for the company’s earnings is pegged at $1.54 per share, indicating a year-over-year decrease of 42.3%. The consensus mark for revenues is pinned at $1.28 billion, indicating a deterioration of 3.2% year over year.

The consensus estimate for total amount of coal sold is pegged at 31.6 million tons, up 10.5% from the year-ago quarter’s figure.

What Our Quantitative Model Predicts

Our proven model does not conclusively predict an earnings beat for Peabody Energy this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) increases the odds of an earnings beat. That is not the case here as you will see below.

Peabody Energy Corporation Price and EPS Surprise

Peabody Energy Corporation Price and EPS Surprise

Peabody Energy Corporation price-eps-surprise | Peabody Energy Corporation Quote

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, Peabody Energy has a Zacks Rank #5 (Strong Sell).

Stocks to Consider

Investors may consider the following players from the same sector that have the right combination of elements to come up with an earnings beat this reporting cycle.

TC Energy Corporation (TRP - Free Report) is likely to report an earnings beat when it announces second-quarter results on Jul 28, before market open. It has an Earnings ESP of +11.77% and a Zacks Rank #2 at present. You can see the complete list of today's Zacks #1 Rank stocks here.

TRP’s long-term (three to five years) earnings growth rate is 4%. It delivered an average earnings surprise of 2.1% in the last four quarters.

Plains All American Pipeline (PAA - Free Report) is expected to post an earnings beat when it announces second-quarter results on Aug 4, before market open. It has an Earnings ESP of +34.62% and a Zacks Rank #3 at present.

The Zacks Consensus Estimate for PAA’s earnings is pegged at 21 cents per unit. It delivered an average earnings surprise of 11.5% in the last four quarters.

Cactus, Inc. (WHD - Free Report) is likely to come up with an earnings beat when it reports second-quarter results on Aug 7, after market close. It has an Earnings ESP of +4.41% and a Zacks Rank #3 at present.

WHD’s long-term earnings growth rate is 5.79%. It delivered an average earnings surprise of 13.6% in the last four quarters.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

 

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