Yahoo Finance Why Cloud Peak Energy’s Stock Tumbled after Its 1Q16 Earnings Announcement
Cloud Peak Energy's Not-So-Peak 1Q16 Earnings
Cloud Peak Energy earnings announcement
Cloud Peak Energy (CLD) announced its 1Q16 earnings results after market hours on April 28, 2016. In this series, we’ll analyze the 1Q16 results of Cloud Peak Energy in detail, comparing its results with analyst expectations and analyzing the factors that caused any deviation. We’ll also have a look at the management’s guidance, analyst expectations for 2016, and an outlook for the company.
Cloud Peak Energy’s stock price reaction
Cloud Peak Energy posted muted revenues for 1Q16, reporting adjusted EPS (earnings per share) of -$0.53, as compared to the analyst consensus EPS estimate of -$0.20. Cloud Peak Energy’s stock price declined by almost 12% during the early market hours on April 29, 2016. But the company’s weak fiscal 2016 guidance and broad-based Market cues dragged down the stock price further. After its 4Q15 earnings release on February 17, as of May 2, 2016, CLD’s stock gained by nearly 40%.
Peer performances
This recent rally in commodity prices helped major coal mining stocks to recover from their February lows. However, Peabody Energy (BTUUQ) was an exception. BTUUQ stock lost nearly 36% from February 17, 2016, through May 2, 2016. The company filed for Chapter 11 bankruptcy protection on April 13, 2016.
On April 29, 2016, Cloud Peak’s peers Alliance Resource Partners (ARLP) and Westmoreland Coal Company (WLB) lost nearly 4% and 2% respectively. Stocks of Peabody Energy (BTUUQ) and Arch Coal (ACIIQ) gained by about 2% and 3%, respectively. The broader coal market tracked by the Market Vectors Coal ETF (KOL) closed almost flat during the intraday trading session on April 29, 2016.
In the next part of this series, we’ll look at Cloud Peak Energy’s 1Q16 shipments.
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