Brean Murray Carret & Co. Cuts Price Target on Arch Coal (ACI), Misses Consensus and Lowers Guidance
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Price: $12.38 +3.34%
Rating Summary:
18 Buy, 17 Hold, 7 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
18 Buy, 17 Hold, 7 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Brean Murray Carret & Co. is maintaining its Buy rating on shares of Arch Coal Inc. (NYSE: ACI), but is lowering its price target from $43 to $39 following its Q2 results.
The released its Q2 results with EPS of $0.44, well below the Street's estimate of $0.57 as PRB volumes were weaker than anticipated due to flooding in the Midwest.
Management cut its full year 2011 guidance. ACI now forecasts adjusted EPS of $1.75-$2.15, less than its previous guidance of $2.10-$2.60. The reasons for the lower guidance are a higher than predicted share count, higher DD&A, a higher interest expense, and lost PRB output.
The company did increase its guidance for synergies from $70-$80 million to $100-$120 million, which reflects the acquisition of International Coal Group. The International Coal acquisition strongly positions that company on track for its "15 by 15" growth plan.
The firm cut its Q3 and Q4 2011 EPS estimates from $0.79 and $0.62 to $0.54 and $0.61. Brean Murray Carret is also lowering its 2011 and 2012 EPS estimates from $2.38 and $3.95 to $2.01 and $3.80.
For more ratings news on Arch Coal Inc click here and for the rating history of Arch Coal Inc click here.
Shares of Arch Coal Inc closed at $25.60 yesterday.
The released its Q2 results with EPS of $0.44, well below the Street's estimate of $0.57 as PRB volumes were weaker than anticipated due to flooding in the Midwest.
Management cut its full year 2011 guidance. ACI now forecasts adjusted EPS of $1.75-$2.15, less than its previous guidance of $2.10-$2.60. The reasons for the lower guidance are a higher than predicted share count, higher DD&A, a higher interest expense, and lost PRB output.
The company did increase its guidance for synergies from $70-$80 million to $100-$120 million, which reflects the acquisition of International Coal Group. The International Coal acquisition strongly positions that company on track for its "15 by 15" growth plan.
The firm cut its Q3 and Q4 2011 EPS estimates from $0.79 and $0.62 to $0.54 and $0.61. Brean Murray Carret is also lowering its 2011 and 2012 EPS estimates from $2.38 and $3.95 to $2.01 and $3.80.
For more ratings news on Arch Coal Inc click here and for the rating history of Arch Coal Inc click here.
Shares of Arch Coal Inc closed at $25.60 yesterday.
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