Peabody Energy Corporation Shares Gain On Higher Outlook For Operating Income

Peabody Energy Corporation BTU gained nearly 3 percent in midday trading Tuesday after the company boosted its third-quarter estimate for operating income.

The St. Louis-based coal miner attributed its improved outlook to better-than-expected results from its western U.S. and Australian operations, as well as across-the-board cost cutting.

The company now expects $190 million to $210 million in adjusted third-quarter earnings before interest, taxes, depreciation and amortization. That's up from its July forecast of $140 million to $190 million.

Peabody, slated to post earnings October 20, also widened its forecasted adjusted third-quarter loss to $0.69 to $0.63 per share, versus its earlier prediction of $0.53 to $0.40. Analysts expect a loss of $0.40 per share.

The company blamed the wider loss on tax expense following the repeal of the Minerals Resource Rent Tax in Australia.

Peabody has been dogged by low coal prices and last year posted a loss of $525 billion, or $1.12 per share. Wall Street expects a 2014 loss of $1.13 per share.

Shares were last trading at $12.96, up 2.4 percent.

Posted In: NewsGuidanceIntraday Update
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