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Arch Resources (ARCH) Q2 Earnings Lag Estimates, Revenues Beat
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Arch Resources, Inc. (ARCH - Free Report) reported second-quarter 2024 operating earnings per share of 81 cents, which missed the Zacks Consensus Estimate of $1.31 by 38.2%. The bottom line declined from the year-ago quarter’s $4.04.
Revenues
Total revenues were $608.8 million, which beat the Zacks Consensus Estimate of $505 million by 20.6%. However, the top line decreased 24.4% from $757.3 million in the year-ago quarter.
Arch Resources Inc. Price, Consensus and EPS Surprise
In the Metallurgical segment, ARCH sold 2.2 million tons of coal, lower than the prior-year quarter’s figure by 12%. Cash margins were $40.94 per ton compared with $53.73 in the year-ago quarter.
In the Thermal segment, the company sold 11.1 million tons of coal, lower than the prior-year quarter’s figure by 31.9%. Cash margins were (4 cents) per ton against $1.77 in the prior-year period.
Highlights of the Release
Arch Resources shipped 2 million tons of coking coal despite the extended closure of the Baltimore shipping channel due to the collapse of the Francis Scott Key Bridge.
ARCH is on a buyback spree to improve shareholders' value. It repurchased 94,367 shares for $15.0 million, reducing the share count by more than 3.5 million shares, or more than 16% since May 2022.
The company also repaid $12.5 million of debt, bringing its total debt level to $133.3 million and its net positive cash position to $146.0 million.
Financial Highlights
Cash and cash equivalents and short-term investments were $279.3 million as of Jun 30, 2024, compared with $320.5 million as of Dec 31, 2023.
Long-term debt was nearly $101.7 million as of Jun 30, 2024, compared with $105.3 million as of Dec 31, 2023.
Cash provided by operating activities in the first six months of 2024 was $187.5 million compared with $322.9 million in the year-ago period.
Guidance
Arch Resources continues to expect coking coal sales in the band of 8.6-9 million tons for 2024, with higher shipping levels in the second half of the year. The Management expects the average per-ton cost for the Metallurgical segment to be in the range of $87-$92. Unit costs are expected to be lower in the year’s second half.
SunCoke Energy, Inc. (SXC - Free Report) will report second-quarter 2024 results on Jul 31. The Zacks Consensus Estimate for SXC’s second-quarter earnings is pinned at 22 cents per share.
The consensus estimate for 2024 earnings is pegged at 90 cents per share, implying a 32.4% increase from the year-earlier reported level.
Warrior Met Coal, Inc. (HCC - Free Report) will release second-quarter results on Aug 1. The Zacks Consensus Estimate for HCC’s second-quarter earnings is pinned at $1.01 per share.
The consensus estimate for HCC’s 2024 earnings is pegged at $7.36 per share, implying a decline of 23.3% from that reported a year ago.
Peabody Energy Corporation (BTU - Free Report) will report second-quarter results on Aug 1. The Zacks Consensus Estimate for second-quarter earnings is pegged at 53 cents.
The consensus estimate for BTU’s 2024 earnings is pegged at $2.47 per share, implying a decline of 50.6% from the year-earlier reported level.
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Arch Resources (ARCH) Q2 Earnings Lag Estimates, Revenues Beat
Arch Resources, Inc. (ARCH - Free Report) reported second-quarter 2024 operating earnings per share of 81 cents, which missed the Zacks Consensus Estimate of $1.31 by 38.2%. The bottom line declined from the year-ago quarter’s $4.04.
Revenues
Total revenues were $608.8 million, which beat the Zacks Consensus Estimate of $505 million by 20.6%. However, the top line decreased 24.4% from $757.3 million in the year-ago quarter.
Arch Resources Inc. Price, Consensus and EPS Surprise
Arch Resources Inc. price-consensus-eps-surprise-chart | Arch Resources Inc. Quote
Segment Details
In the Metallurgical segment, ARCH sold 2.2 million tons of coal, lower than the prior-year quarter’s figure by 12%. Cash margins were $40.94 per ton compared with $53.73 in the year-ago quarter.
In the Thermal segment, the company sold 11.1 million tons of coal, lower than the prior-year quarter’s figure by 31.9%. Cash margins were (4 cents) per ton against $1.77 in the prior-year period.
Highlights of the Release
Arch Resources shipped 2 million tons of coking coal despite the extended closure of the Baltimore shipping channel due to the collapse of the Francis Scott Key Bridge.
ARCH is on a buyback spree to improve shareholders' value. It repurchased 94,367 shares for $15.0 million, reducing the share count by more than 3.5 million shares, or more than 16% since May 2022.
The company also repaid $12.5 million of debt, bringing its total debt level to $133.3 million and its net positive cash position to $146.0 million.
Financial Highlights
Cash and cash equivalents and short-term investments were $279.3 million as of Jun 30, 2024, compared with $320.5 million as of Dec 31, 2023.
Long-term debt was nearly $101.7 million as of Jun 30, 2024, compared with $105.3 million as of Dec 31, 2023.
Cash provided by operating activities in the first six months of 2024 was $187.5 million compared with $322.9 million in the year-ago period.
Guidance
Arch Resources continues to expect coking coal sales in the band of 8.6-9 million tons for 2024, with higher shipping levels in the second half of the year. The Management expects the average per-ton cost for the Metallurgical segment to be in the range of $87-$92. Unit costs are expected to be lower in the year’s second half.
Zacks Rank
Arch Resources currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Releases
SunCoke Energy, Inc. (SXC - Free Report) will report second-quarter 2024 results on Jul 31. The Zacks Consensus Estimate for SXC’s second-quarter earnings is pinned at 22 cents per share.
The consensus estimate for 2024 earnings is pegged at 90 cents per share, implying a 32.4% increase from the year-earlier reported level.
Warrior Met Coal, Inc. (HCC - Free Report) will release second-quarter results on Aug 1. The Zacks Consensus Estimate for HCC’s second-quarter earnings is pinned at $1.01 per share.
The consensus estimate for HCC’s 2024 earnings is pegged at $7.36 per share, implying a decline of 23.3% from that reported a year ago.
Peabody Energy Corporation (BTU - Free Report) will report second-quarter results on Aug 1. The Zacks Consensus Estimate for second-quarter earnings is pegged at 53 cents.
The consensus estimate for BTU’s 2024 earnings is pegged at $2.47 per share, implying a decline of 50.6% from the year-earlier reported level.