Market Overview

Coal Companies Trade Higher After Arch Coal Results

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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%.

Posted-In: Earnings News Intraday Update Movers

 

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