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Market Overview

Earnings Outlook for Arch Coal

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On Thursday, April 22, Arch Coal (NYSE:ARCH) will release its latest earnings report. Benzinga's report can help you figure out the ins and outs of the earnings release.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Wall Street analysts see Arch Coal reporting a quarterly loss of $0.41 per share on sales of $320.27 million. In the same quarter last year, Arch Coal posted a loss of $1.67 per share on sales of $405.23 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

If the company were to match the consensus estimate when it reports Thursday, EPS would be up 75.45%. Revenue would have fallen 20.97% from the same quarter last year. Here is how the company's EPS has stacked up against analyst estimates in the past:

Quarter Q4 2021 Q3 2020 Q2 2020 Q1 2020
EPS Estimate -1.91 -1.04 -2.50 -1.12
EPS Actual -2.21 -1.87 -3.26 -1.67
Revenue Estimate 330.93 M 376.55 M 300.40 M 406.50 M
Revenue Actual 360.58 M 382.26 M 319.52 M 405.23 M

eps graph

Stock Performance

Shares of Arch Coal were trading at $47.26 as of April 20. Over the last 52-week period, shares are up 85.6%. Given that these returns are generally positive, long-term shareholders are probably happy going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Arch Coal is scheduled to hold the call at 10:00:00 ET and can be accessed here.

 

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Posted-In: BZI-EPEarnings