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Peabody Energy (BTU) to Report Q3 Earnings: What's in Store?

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Peabody Energy Corporation (BTU - Free Report) is scheduled to release third-quarter 2023 results on Oct 26, before market open. The company delivered a negative earnings surprise of 24.7% 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 will continue to benefit from its diverse asset base and low-cost U.S. thermal segments. The company’s third-quarter earnings are also likely to have benefited from its continued share repurchase program.

BTU’s continued debt reduction is likely to have decreased capital financing costs and raised profitability in the to-be-reported quarter.

The company is also expected to have benefited from increased tons of coal sold during the quarter.

Q3 Expectations

The Zacks Consensus Estimate for BTU’s earnings is pegged at 80 cents per share, indicating a year-over-year decrease of 55.1%.

The consensus mark for revenues is pinned at $1.09 billion, indicating a deterioration of 19.1% year over year.

The consensus estimate for the total amount of coal sold is pegged at 31.1 million tons, up 7.6% from the previous quarter’s reported 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 sports a Zacks Rank #1. You can see the complete list of today's Zacks #1 Rank stocks here.

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.

CNX Resources (CNX - Free Report) is likely to report an earnings beat when it announces third-quarter results on Oct 25, before market open. It has an Earnings ESP of +10.35% and a Zacks Rank #3 at present.

CNX’s long-term (three to five years) earnings growth rate is 5.56%. It delivered an average earnings surprise of 15.2% in the last four quarters.

Plains All American Pipeline (PAA - Free Report) is expected to post an earnings beat when it announces third-quarter results on Nov 3, before market open. It has an Earnings ESP of +19.15% and a Zacks Rank #3 at present.

The Zacks Consensus Estimate for PAA’s earnings is pegged at 24 cents per unit. It delivered an average earnings surprise of 11.3% in the last four quarters.

Devon Energy (DVN - Free Report) is expected to post an earnings beat when it announces third-quarter results on Nov 7, after market close. It has an Earnings ESP of +2.27% and a Zacks Rank #2 at present.

DVN’s long-term earnings growth rate is 51.35%. It delivered an average earnings surprise of 0.8% in the last four quarters.

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

 

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