Peabody Energy Earnings Preview: Analysts Expect Rising Revenue, Falling EPS

Peabody Energy (NYSE: BTU) announces its next round of earnings this Tuesday, October 25, 2011. Here's Benzinga's essential guide to Peabody Energy's third quarter earnings report.

Earnings and Revenue:

Based on estimates, investors are readying for a positive EPS reading of 89 cents/share and revenues of $2.02 billion. Peabody Energy's latest numbers will no doubt be compared with the company's year-ago quarter, when it reported a profit of 99 cents/share on revenues of $1.86 billion. We'll have to wait for Tuesday to see if Peabody Energy reports a decline in EPS and a boost in revenue from the year-ago quarter, as analysts are predicting.

Here's how the company's reported EPS has stacked up against analyst estimates in the past:

Stock Performance:

At last check, shares of Peabody Energy were trading at $37.89. Since January 1st, shares of Peabody Energy have declined 40.5%. For a full 12 months, the return has risen by 15.9%. Given that these returns are generally positive, long-term shareholders are probably satisfied going into this earnings release.

• Long-term shareholders are already enjoying 12-month gains prior to the announcement

Average Stock Rating:

The average rating by analysts for Peabody Energy is a Moderate Buy. The strength of this rating has declined slightly over the past three months.

Competitors:

Wondering how some of the other energy companies are doing? Here are a few of Peabody Energy's peers in that sector.

• Arch Coal (NYSE: ACI): Moderate Buy with a $0.44 recent quarter EPS
• Alliance Holdings GP, L.P (NASDAQ: AHGP): Moderate Buy with a $0.89 recent quarter EPS
• Alpha Natural Resources (NYSE: ANR): Moderate Buy with a $0.96 recent quarter EPS
• CONSOL Energy (NYSE: CNX): Moderate Buy with a $0.76 recent quarter EPS

Peabody Energy is in the coal industry, which has experienced price/earnings growth of 4.4%.

Finally, a description of the company's main areas of operation: Peabody Energy mines steam coal for sale mainly to electric utilities and metallurgical coal for sale to industrial customers.

Take Action:

That's your advanced look at Peabody Energy's upcoming earnings numbers -- be ready to take quick action if the company's report contains any surprises. Also, check back in with us after the announcement for a full recap and what-to-do-next guide.

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