Peabody Energy Corp. (BTU) Misses Q1 EPS by 19c

Peabody Energy Corp. (NYSE: BTU) reported Q1 EPS of ($0.19), $0.19 worse than the analyst estimate of $0.00. Revenue for the quarter came in at $1.63 billion versus the consensus estimate of $1.69 billion.

U.S. COAL MARKETS AND PEABODY'S POSITION

• Coal generation rose 9 percent through March on higher utilization and continued gas-to-coal switching. Winter heating degree days were 15 percent higher in coal heavy regions, and Peabody now projects 2014 U.S. coal demand will grow by 35 to 45 million tons over 2013 levels;
• U.S. stockpiles have declined over 50 million tons in the last 12 months to an estimated 120 million in March, the lowest levels since 2006. Southern Powder River Basin inventories stand at 44 days, below normal levels and less than half of the recent peak in April 2012;
• Prompt month Southern Powder River Basin prices have risen 30 percent over the last six months and are the highest in more than two years. Utility purchasing is expected to increase in response to greater coal demand and lower contracted volumes; and
• Southern Powder River and Illinois Basin coal demand is expected to grow 100 million tons by 2016 on growing utilization and basin switching.

Approximately 5 to 10 percent of Peabody's projected 2014 U.S. production is unpriced, with 40 to 50 percent of 2015 production unpriced at comparable 2014 production levels.

For earnings history and earnings-related data on Peabody Energy Corp. (BTU) click here.

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