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Cloud Peak Energy (CLD) Q2 Loss in Line, Revenues Miss Mark
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Coal producer, Cloud Peak Energy reported a loss of 4 cents per share in the second quarter of 2017, in line with the Zacks Consensus Estimate.
Revenue
Cloud Peak Energy’s quarterly revenues of $229.2 million increased approximately 31.6% year over year from $174.2 million. However, the top line lagged the Zacks Consensus Estimate of $237.7 million by 3.6%.
Cloud Peak Energy Inc Price, Consensus and EPS Surprise
In the quarter, the company sold 14.3 million tons of coal compared with 11.8 million tons in the year-ago quarter. Realized price per ton of coal during the quarter was $12.25, down nearly 2.8% year over year. Revenues from this segment were $ 178.7 million, reflecting an increase of 17.5% from $152.1 million in the year-ago quarter, primarily due to higher shipments.
Logistics and Related Activities
Total tons delivered during the quarter were 1.3 million, up from 0.1 million tons in the prior-year quarter. Revenues from this segment increased to $ 66.0 million, reflecting a surge of 1962.5% from $3.2 million in the year-ago quarter.
Highlight of the Release
Total costs and expenses in the reported quarter were $226.7 million, witnessing an increase of 76.7% from $128.3 million in the year-ago quarter. This was primarily due to an increase in the cost of product sold.
The average cost of coal sold during the quarter was $9.72 per ton, down from $10.50 in the second quarter of 2016. The cash margin of per ton coal sold in the quarter improved 20.5% to $2.53 from $2.10 in the year-ago quarter due to the company’s cost-control initiatives.
Financial Update
As of Jun 30, the company’s cash and cash equivalents were $80.5 million, down from $83.7 million as of Dec 31, 2016.
Senior notes as of Jun 30, were $409.4 million, lower than $475 million as of Dec 31, 2016.
Cash provided (used) in operating activities in first half of 2017 was $12.5 million compared with ($12.2) million in the prior-year quarter.
Capital expenditure for the quarter was $3.8 million, lower than the year-ago level of $4.5 million.
Guidance
Cloud Peak Energy expects coal shipment in 2017 from three mines in the range of 56−59 million tons. Out of the expected shipments, nearly 56 million tons are committed with a fixed price of $12.18 per ton.
Capital expenditures for the full year are expected in the range of $20–$25 million.
Upcoming Peer Releases
Natural Resource Partners LP (NRP - Free Report) is expected to release second-quarter 2017 earnings on Aug 8. The Zacks Consensus Estimate for the quarter's earnings is pegged at $1.38.
Alliance Resource Partners, L.P. (ARLP - Free Report) is expected to release second-quarter 2017 earnings on Jul 31. The Zacks Consensus Estimate for the quarter is pegged at 80 cents.
CNX Coal Resources is expected to release second-quarter 2017 earnings on Jul 31. The Zacks Consensus Estimate for earnings of 51 cents per share remained same over the last 30 days.
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Cloud Peak Energy (CLD) Q2 Loss in Line, Revenues Miss Mark
Coal producer, Cloud Peak Energy reported a loss of 4 cents per share in the second quarter of 2017, in line with the Zacks Consensus Estimate.
Revenue
Cloud Peak Energy’s quarterly revenues of $229.2 million increased approximately 31.6% year over year from $174.2 million. However, the top line lagged the Zacks Consensus Estimate of $237.7 million by 3.6%.
Cloud Peak Energy Inc Price, Consensus and EPS Surprise
Cloud Peak Energy Inc Price, Consensus and EPS Surprise | Cloud Peak Energy Inc Quote
Segment Performance
Owned and Operated Mines
In the quarter, the company sold 14.3 million tons of coal compared with 11.8 million tons in the year-ago quarter. Realized price per ton of coal during the quarter was $12.25, down nearly 2.8% year over year. Revenues from this segment were $ 178.7 million, reflecting an increase of 17.5% from $152.1 million in the year-ago quarter, primarily due to higher shipments.
Logistics and Related Activities
Total tons delivered during the quarter were 1.3 million, up from 0.1 million tons in the prior-year quarter. Revenues from this segment increased to $ 66.0 million, reflecting a surge of 1962.5% from $3.2 million in the year-ago quarter.
Highlight of the Release
Total costs and expenses in the reported quarter were $226.7 million, witnessing an increase of 76.7% from $128.3 million in the year-ago quarter. This was primarily due to an increase in the cost of product sold.
The average cost of coal sold during the quarter was $9.72 per ton, down from $10.50 in the second quarter of 2016. The cash margin of per ton coal sold in the quarter improved 20.5% to $2.53 from $2.10 in the year-ago quarter due to the company’s cost-control initiatives.
Financial Update
As of Jun 30, the company’s cash and cash equivalents were $80.5 million, down from $83.7 million as of Dec 31, 2016.
Senior notes as of Jun 30, were $409.4 million, lower than $475 million as of Dec 31, 2016.
Cash provided (used) in operating activities in first half of 2017 was $12.5 million compared with ($12.2) million in the prior-year quarter.
Capital expenditure for the quarter was $3.8 million, lower than the year-ago level of $4.5 million.
Guidance
Cloud Peak Energy expects coal shipment in 2017 from three mines in the range of 56−59 million tons. Out of the expected shipments, nearly 56 million tons are committed with a fixed price of $12.18 per ton.
Capital expenditures for the full year are expected in the range of $20–$25 million.
Upcoming Peer Releases
Natural Resource Partners LP (NRP - Free Report) is expected to release second-quarter 2017 earnings on Aug 8. The Zacks Consensus Estimate for the quarter's earnings is pegged at $1.38.
Alliance Resource Partners, L.P. (ARLP - Free Report) is expected to release second-quarter 2017 earnings on Jul 31. The Zacks Consensus Estimate for the quarter is pegged at 80 cents.
Zacks Rank & Key Pick
Cloud Peak has a Zacks Rank #4 (Sell). A better-ranked stock in the same space is CNX Coal Resources LP (CNXC - Free Report) , carrying a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
CNX Coal Resources is expected to release second-quarter 2017 earnings on Jul 31. The Zacks Consensus Estimate for earnings of 51 cents per share remained same over the last 30 days.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>