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Latest posts by Jorge Malinowski (see all)
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- LOUIS, August 10, 2019 – Shares of Peabody Energy Corporation (NYSE: BTU) declined -2.00% to $18.13. The stock grabbed the investor’s attention and traded 993.115K shares as compared to its average daily volume of 864.04K shares. The stock’s institutional ownership stands at 6.39%.
Peabody (BTU) recently declared its first quarter 2019 operating results, counting revenues of $1.25B; income from continuing operations, net of income taxes of $133.30M; net income attributable to common stockholders of $124.20M; diluted earnings per share from continuing operations of $1.15; and Adjusted EBITDA of $253.90M.
First Quarter 2019 Results:
First quarter 2019 revenues totaled $1.25B on 40.50M tons of coal sales, contrast to $1.46B in revenues and 48.30M tons of coal sales in the prior year, reflecting the impact of a challenged coal industry logistics chain. Powder River Basin coal shipments declined 22 percent from the prior year, as winter weather and flooding across the plains states heavily influenced rail performance starting in early February. The loss of revenues and volume year over year related to the idle North Goonyella Mine was mostly offset by the Shoal Creek Mine, which shipped about 668.0K tons in the first quarter.
Income from continuing operations, net of income taxes totaled $133.30M, contrast to $208.30M in the prior year. Diluted earnings per share from continuing operations increased $0.32 per share to $1.15 per share because of the company’s ongoing share repurchase program and the conversion of preferred stock in the prior year.
Contrast to the prior year, Adjusted EBITDA declined $110.00M to $253.90M mainly because of lower seaborne metallurgical coal volumes, costs associated with the North Goonyella incident and lower PRB shipments, partially offset by $33.10M of higher seaborne thermal Adjusted EBITDA driven by increased volumes and elevated pricing. PRB shipments were influenced by about $23.0M in added expenses attributable to rail issues stemming from winter weather and flooding during the quarter.
First quarter depreciation, depletion and amortization (DD&A) increased $2.90M over the prior year to $172.50M mainly because of accelerated DD&A related to the Kayenta Mine closure of $12.50M and $11.30M associated with the Shoal Creek Mine, partially offset by lower coal sales contract amortization of $21.10M. Peabody anticipates DD&A to decline as the year progresses and is targeting full-year expense of $600.0M to $650.0M.
Balance Sheet and Cash Flow:
First quarter operating cash flows totaled $197.60M contrast to prior year operating cash flows of $579.70M, which included the benefit of about $214.00M in returned cash collateral. Free Cash Flow totaled $161.90M and included $35.80M in capital expenditures.
During the quarter, Peabody repurchased $98.80M of common stock, with an additional $34.0M in April, bringing total repurchases to $1.14B since August 2017. Since August 2017, the company has repurchased a total of 31.20M shares under the program, representing 23 percent of shares at first outstanding on a fully converted basis. In addition, the company declared and paid a $1.85 per share supplemental dividend, demonstrating strong confidence in Peabody’s substantial cash flow generating capabilities. The supplemental dividend was in addition to the company’s quarterly dividend of $0.13 per share that was paid in March. Quarter-end cash and cash equivalents totaled $798.10M.
BTU has a market value of $2.24B while its EPS was booked as $4.66 in the last 12 months. The stock has 106.39M shares outstanding. In the profitability analysis, the company has gross profit margin of 26.20% while net profit margin was 10.40%. Analyst recommendation for this stock stands at 2.20.