Arch Coal, Inc. (ARCH) Misses Q2 EPS by 59c
Arch Coal, Inc. (NYSE: ARCH) reported Q2 EPS of $1.85, $0.59 worse than the analyst estimate of $2.44. Revenue for the quarter came in at $550 million versus the consensus estimate of $595.2 million.
Company Outlook
Based on the company's current expectations regarding the outlook for metallurgical coal markets, Arch has raised its coking coal volume guidance for 2017. Arch now expects to sell between 6.9 million tons and 7.1 million tons of coking coal. At the midpoint of its volume guidance level, Arch is now more than 90-percent committed on coking coal sales for the full year, with more than 20 percent of that committed volume exposed to index-based pricing. At the midpoint of guidance, Arch's thermal sales are 95-percent committed for the full year 2017.
"Looking ahead, Arch is in a uniquely competitive position to leverage its complementary lines of business to capitalize on strong metallurgical markets and dynamic thermal markets," said Eaves. "As we progress through the balance of the year, Arch remains financially sound, operationally strong, strategically positioned and completely committed to creating long-term value for our shareholders."
2017 | 2018 | ||||||||||||||
Tons | $ per ton | Tons | $ per ton | ||||||||||||
Sales Volume (in millions of tons) | |||||||||||||||
Coking | 6.9 | - | 7.1 | ||||||||||||
Thermal | 87.0 | - | 95.0 | ||||||||||||
Total | 93.9 | - | 102.1 | ||||||||||||
Metallurgical (in millions of tons) | |||||||||||||||
Committed, Priced Coking | 5.0 | $97.14 | 0.1 | $97.37 | |||||||||||
Committed, Unpriced Coking | 1.4 | 2.0 | |||||||||||||
Total Committed Coking | 6.4 | 2.1 | |||||||||||||
Committed, Priced Thermal Byproduct | 0.9 | $24.45 | 0.4 | $30.33 | |||||||||||
Committed, Unpriced Thermal Byproduct | - | - | |||||||||||||
Total Committed Thermal Byproduct | 0.9 | 0.4 | |||||||||||||
Average Metallurgical Cash Cost | $51.00 | - | $56.00 | ||||||||||||
Powder River Basin (in millions of tons) | |||||||||||||||
Committed, Priced | 76.4 | $12.47 | 36.5 | $12.20 | |||||||||||
Committed, Unpriced | 1.8 | 3.0 | |||||||||||||
Total Committed | 78.2 | 39.5 | |||||||||||||
Average Cash Cost | $10.20 | - | $10.60 | ||||||||||||
Other Thermal (in millions of tons) | |||||||||||||||
Committed, Priced | 8.4 | $34.61 | 2.9 | $37.94 | |||||||||||
Committed, Unpriced | - | - | |||||||||||||
Total Committed | 8.4 | 2.9 | |||||||||||||
Average Cash Cost | $23.00 | - | $27.00 | ||||||||||||
Corporate (in $ millions) | |||||||||||||||
D,D&A excluding Sales Contract Amortization | $124 | - | $132 | ||||||||||||
Sales Contract Amortization | $50 | - | $58 | ||||||||||||
ARO Accretion | $30 | - | $32 | ||||||||||||
S,G&A | $85 | - | $89 | ||||||||||||
Interest Expense | $23 | - | $27 | ||||||||||||
Capital Expenditures | $52 | - | $60 | ||||||||||||
Tax Provision | 0% | - | 3% | ||||||||||||
For earnings history and earnings-related data on Arch Coal, Inc. (ARCH) click here.