Coal Companies Trade Higher After Arch Coal Results
The coal sector has been absolutely pulverized in 2012 on falling demand and other industry headwinds. Things have gotten so bad, that one-time multi-billion dollar company Patriot Coal (NYSE: PCX) recently filed bankruptcy. Other coal names have been reduced to mere penny stocks. However, on Friday morning, Arch Coal (NYSE: ACI) released its fiscal second-quarter results, and this has catalyzed a move higher in the sector.
The company reported a net loss attributable to the company of $435.5 million or $2.05 per share, compared to a profit of $6.31 million or $0.04 per share, in the year ago period.
On an adjusted basis, which is comparable to analysts' consensus, Arch Coal reported a net loss of $22 million or $0.10 per share, versus income of $76.6 million or $0.44 per share, in the year ago period. This beat analysts' consensus EPS estimates which called for a loss of $0.18 in the quarter.
Revenues came in at $1.06 billion, up from the $985.53 million the company reported last year. This also came in ahead of Wall Street estimates of $997.98 million.
In the wake of the results, ACI shares have jumped better than 20% to $6.30. Other names that are benefiting include Alpha Natural Resources (NYSE: ANR), which is up more than 6% and James River Coal (NASDAQ: JRCC), which has added more than 10%.
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