Coal mining company Peabody Energy (NYSE: BTU) will be reporting results this Tuesday before market hours. Here’s what to look for.
Peabody Energy beat analysts’ revenue expectations last quarter, reporting revenues of $1.02 billion, down 9% year on year. It was a strong quarter for the company, with EPS in line with analysts’ estimates. It reported 31.9 million other production, down 3.6% year on year.
Is Peabody Energy a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Peabody Energy’s revenue to grow 2.9% year on year, a reversal from the 4.7% decrease it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Peabody Energy has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Peabody Energy’s peers in the upstream & integrated segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Solaris Energy Infrastructure delivered year-on-year revenue growth of 55.3%, beating analysts’ expectations by 6.8%, and Weatherford reported a revenue decline of 3.4%, topping estimates by 0.6%. Solaris Energy Infrastructure traded up 5.4% following the results while Weatherford was also up 1.4%.
Read our full analysis of Solaris Energy Infrastructure’s results here and Weatherford’s results here.
There has been positive sentiment among investors in the upstream & integrated segment, with share prices up 4.1% on average over the last month. Peabody Energy is down 19.6% during the same time and is heading into earnings with an average analyst price target of $37.08 (compared to the current share price of $26.55).
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