Canaccord Genuity Morning Coffee on Peabody Energy (BTU): Missed the Mark
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Price: $27.61 --0%
Rating Summary:
7 Buy, 12 Hold, 7 Sell
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Up: 4 | Down: 4 | New: 33
Rating Summary:
7 Buy, 12 Hold, 7 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 4 | Down: 4 | New: 33
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Canaccord Genuity Morning Coffee on Peabody Energy (NYSE: BTU): Missed the mark.
The sellers of Peabody Energy were piling up Tuesday and today) after the coal miner said its fourth-quarter earnings increased 6% as demand from China and other developing nations helped the company sell more coal at higher prices; however, the results still missed analyst expectations by a wide margin. Peabody's fourth-quarter profit rose to $222.4 million, or $0.82 a share, from $210 million, or $0.77 a share in the year-ago period. Adjusted income rose to $0.98 a share from $0.87 a share. Revenue increased to $2.25 billion from $1.79 billion. The Street was expecting the coal producer to earn $1.33 a share on revenue of $2.37 billion. Looking ahead, Peabody said it now expects adjusted first-quarter profit of $0.50-0.75 a share, compared to the Street's estimate of $1.18 a share. As U.S. utilities burned 5% less coal in 2011, China's power plants increased consumption 14% while India's power plants burned 9% more. Peabody estimates that 90 gigawatts of coal-fired power plants will come online this year, and that will increase international demand by another 300 million tonnes. Meanwhile, the company said U.S. coal consumption will be "impacted by muted economic growth." American power companies also are increasingly switching to generators that burn natural gas to take advantage of a plunge in gas prices.
The sellers of Peabody Energy were piling up Tuesday and today) after the coal miner said its fourth-quarter earnings increased 6% as demand from China and other developing nations helped the company sell more coal at higher prices; however, the results still missed analyst expectations by a wide margin. Peabody's fourth-quarter profit rose to $222.4 million, or $0.82 a share, from $210 million, or $0.77 a share in the year-ago period. Adjusted income rose to $0.98 a share from $0.87 a share. Revenue increased to $2.25 billion from $1.79 billion. The Street was expecting the coal producer to earn $1.33 a share on revenue of $2.37 billion. Looking ahead, Peabody said it now expects adjusted first-quarter profit of $0.50-0.75 a share, compared to the Street's estimate of $1.18 a share. As U.S. utilities burned 5% less coal in 2011, China's power plants increased consumption 14% while India's power plants burned 9% more. Peabody estimates that 90 gigawatts of coal-fired power plants will come online this year, and that will increase international demand by another 300 million tonnes. Meanwhile, the company said U.S. coal consumption will be "impacted by muted economic growth." American power companies also are increasingly switching to generators that burn natural gas to take advantage of a plunge in gas prices.
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