Peabody Energy’s 3Q15 Earnings Triggered Fall in Its Stock Price



Peabody Energy’s 3Q15 earnings

Peabody Energy (BTU) published its 3Q15 earnings on October 27, 2015. This series will discuss the company’s operational, financial, and stock market performance.

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Peabody Energy’s stock market performance

Peabody Energy and other American coal producers’ misery continued in 3Q15 as natural gas prices remained subdued in spite of higher electricity demand on the back of warmer weather across the US.

Peabody Energy lost 37.0% in 3Q15 and another 18% between October 1 and October 27, resulting in an 85% drop in the stock price since the beginning of 2015. On October 27, the stock lost 21.8% after the company reduced its guidance and provided a dismal outlook for 2016. `

The company exercised a one-for-15 reverse stock split effective September 30, 2015. Past stock prices are adjusted to make them comparable with the post reverse-split prices.

Peer performance

Cloud Peak Energy (CLD) and Consol Energy (CNX) also published their 3Q15 earnings on October 27, 2015. Cloud Peak Energy beat estimates while Consol Energy (CNX) was unable to meet analyst expectations. In spite of surpassing expectations, Cloud Peak Energy lost 4.9% on the earnings day while Consol Energy lost 21.2% on the same day.

The representative of the global coal industry, the VanEck Vectors Coal ETF (KOL), lost 3.3% on October 27. In the next part, we will have a look at Peabody Energy’s shipments in 3Q15.


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