Profit Up for Peabody Energy

Peabody Energy (NYSE: BTU) announced its results for the third quarter on October 25, 2011. Let's take a closer look at the company's industry, financials, and commentary and see what steps you can take next.

Earnings and Revenue:
Peabody Energy's revenues topped Wall Street's expectations, though the company's EPS fell short of predictions. The company reported adjusted net income of 87 cents/share versus the 89 cents/share estimate and revenues of $2.04 billion versus the $2.02 billion estimate. Revenue climbed 9.2% from the same period last year.
Last quarter marked the third in a row of rising net income. Peabody Energy's revenue has grown during each of the past three quarters on a year-over-year basis.

Income:
For the year, Peabody Energy reported net income of $3.50/share. The company trumped analyst projections of $3.30 by 6.1%. According to the reported number, the company's income rose 22.3% from last year's levels.

Conference Call:
The conference call for third quarter earnings can be accessed here.

Official Comment:
"Peabody delivered solid third quarter results and we remain on track for our best year ever," said Peabody Energy Chairman and Chief Executive Officer Gregory H. Boyce. "The market supply-demand indicators largely remain positive, with Asian and European coal-fueled generation rising, recent Chinese coal imports setting new records, and U.S. coal inventories falling dramatically. Peabody is well positioned in the United States with strong committed sales and low-cost production. Globally, we are growing to serve increasing Asia-Pacific demand by expanding existing mines and completing the acquisition of Macarthur Coal."

Industry:
Peabody Energy's industry, coal, is currently reporting price/earnings growth of 4.4%.

What to Do Next:
Now you can make a better-informed decision about whether to buy, sell or hold Peabody Energy shares until the next earnings announcement. Whatever you do, be sure to check back in with us before the company's next earnings release for a full prep sheet, just like the one we did here.

• To see up-to-date news on Peabody Energy, click here
• To see other trading ideas, click here
• To see other company earnings recaps, click here