Yahoo Finance Arch Resources (ARCH) Q1 Earnings Lag Estimates, Sales Beat
Arch Resources Inc. ARCH reported first-quarter 2023 operating earnings per share (EPS) of $10.02, which missed the Zacks Consensus Estimate of $10.46 by 4.2%. The bottom line declined 22.3% from the year-ago quarter’s $12.89.
Revenues
Total revenues were $869.9 million, which beat the Zacks Consensus Estimate of $700 million by 24.3%. The top line improved 0.2% from $867.9 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
Highlights of the Release
In the Metallurgical segment, ARCH sold 2.2 million tons of coal, up 46.7% from the prior-year quarter’s figure of 1.5 million tons. Cash margins were $121.59 per ton compared with $167.48 in the year-ago quarter.
In the Thermal segment, the company sold 17 million tons of coal, down 6.6% from the prior-year quarter’s figure of 18.2 million tons. Cash margins were $2.7 per ton compared with $5.42 in the prior-year period.
Arch Resources used $18.8 million in the reported quarter to repurchase 131,156 shares at an average price of $143.39 per share. The company also deployed $58.4 million to repurchase its remaining convertible securities, thereby reducing future dilution by 423,000 shares. As of Mar 31, 2023, ARCH had $322.4 million of remaining authorization under its existing $500-million share repurchase program.
Financial Highlights
Cash and cash equivalents were $189.7 million as of Mar 31, 2023 compared with $236.1 million as of Dec 31, 2022.
Long-term debt was $110.9 million as of Mar 31, 2023, compared with $116.3 million as of Dec 31, 2022.
Cash provided by operating activities for first three months of 2023 was $126.1 million compared with $292.9 million in the year-ago period.
Guidance
Arch Resources expects coking coal of 8.9-9.7 million tons for 2023. It also expects coking coal shipments to increase 10% in the second quarter of 2023, assuming continued solid rail and logistics performance. The company projects total thermal coal sales volume of 64-70 million tons.
Arch Resources’ expectation for corporate capital expenditure is pegged at $150-$160 million for 2023.
Zacks Rank
Arch Resources currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Releases
Consol Energy CEIX is scheduled to report first-quarter results on May 2, before market open. The Zacks Consensus Estimate for earnings is pegged at $5.34 per share, indicating a year-over-year increase of 156.7%.
The same for 2023 EPS stands at $21.82, implying a year-over-year improvement of 66.9%. CEIX delivered an average earnings surprise of 23.6% in the last four quarters.
Alliance Resource Partners ARLP is scheduled to report first-quarter results on May 2, before market open. The Zacks Consensus Estimate for earnings is pegged at $1.29 per unit, indicating a year-over-year increase of 360.7%.
The same for 2023 earnings per unit is pinned at $6.09, implying a year-over-year improvement of 38.72%.
SunCoke Energy SXC is scheduled to report first-quarter results on May 4, before market open. The Zacks Consensus Estimate for first-quarter earnings is pegged at 19 cents per share, indicating a year-over-year increase of 37.5%.
The same for 2023 EPS is pinned at 76 cents. SXC delivered an average earnings surprise of 96.8% in the last four quarters.
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Alliance Resource Partners, L.P. (ARLP) : Free Stock Analysis Report
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Consol Energy Inc. (CEIX) : Free Stock Analysis Report