Brean Murray Carret Cuts Price Target on Alpha Natural Resources (ANR), Encouraged with New Guidance
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Price: $0.24 --0%
Rating Summary:
2 Buy, 11 Hold, 8 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
2 Buy, 11 Hold, 8 Sell
Rating Trend: = Flat
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 Alpha Natural Resources (NYSE: ANR), but is reducing its price target from $29 to $25.
The company reported earnings for the fourth quarter totaled a loss of $0.07 per share, well below the Street's consensus of a $0.26 per share gain. The firm notes the miss was largely due to higher Eastern costs and lower met coal shipments.
ANR's 2012 volume guidance was also weaker than previously announced. The new guidance calls for 20-25 million tons. The new guidance is based on low quality met coal sales, thermal coal sales and the potential for contract deferrals from utilities.
For FY12 and FY13, Brean Murray Carret is lowering its EPS estimates from $0.52 and $1.26 to ($0.57) and $0.59.
An analyst at Brean Murray Carret comments, "View the company's updated guidance as a positive, given Alpha's willingness to reduce supply further if needed. It should be noted that Alpha's incremental sales of met coal consists of low-quality product, which currently only earns about $10/ton, according to our estimates. Thus, we believe that the downside to our 2012 earnings estimates for Alpha is limited, which should also provide support for the stock at current levels."
For an analyst ratings summary and ratings history on Alpha Natural Resources click here. For more ratings news on Alpha Natural Resources click here.
Shares of Alpha Natural Resources closed at $20.46 yesterday.
The company reported earnings for the fourth quarter totaled a loss of $0.07 per share, well below the Street's consensus of a $0.26 per share gain. The firm notes the miss was largely due to higher Eastern costs and lower met coal shipments.
ANR's 2012 volume guidance was also weaker than previously announced. The new guidance calls for 20-25 million tons. The new guidance is based on low quality met coal sales, thermal coal sales and the potential for contract deferrals from utilities.
For FY12 and FY13, Brean Murray Carret is lowering its EPS estimates from $0.52 and $1.26 to ($0.57) and $0.59.
An analyst at Brean Murray Carret comments, "View the company's updated guidance as a positive, given Alpha's willingness to reduce supply further if needed. It should be noted that Alpha's incremental sales of met coal consists of low-quality product, which currently only earns about $10/ton, according to our estimates. Thus, we believe that the downside to our 2012 earnings estimates for Alpha is limited, which should also provide support for the stock at current levels."
For an analyst ratings summary and ratings history on Alpha Natural Resources click here. For more ratings news on Alpha Natural Resources click here.
Shares of Alpha Natural Resources closed at $20.46 yesterday.
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