Peabody Energy’s 4Q15 earnings
Peabody Energy (BTU) announced its 4Q15 earnings results for the year and quarter ending December 31, 2015, on February 11, 2016. In this series, we’ll analyze its 4Q15 results in detail. We’ll compare the results with analysts’ expectations and analyze the factors that caused the deviation. We’ll also look at management’s guidance, analysts’ expectations for 2016, and the outlook for Peabody Energy.
Peabody Energy’s stock price reaction
Peabody Energy posted muted earnings results for the year and quarter ending on December 31, 2015. It missed analysts’ consensus estimates. It reported an adjusted diluted loss per share of $9.27 for 4Q15—compared to analysts’ estimate of $8.34. Peabody Energy’s stock price fell by almost 25% during early market hours on February 11, 2016. Weak 2016 guidance dragged down the stock price throughout the trading session. The stock price closed down by nearly 30%.
Weak natural gas prices dragged down coal mining stocks during 4Q15. Major coal mining stocks like Peabody Energy, Arch Coal (ACIIQ), Cloud Peak Energy (CLD), and Alpha Natural Resources (ANRZQ) tested their all-time lows during this period.
On the day of Peabody’s earnings announcement, it’s peers Cloud Peak Energy and Alliance Resource Partners (ARLP) fell by nearly 8%. CONSOL Energy (CNX) and the broader coal market tracked by the VanEck Vectors-Coal ETF (KOL) closed flat during the intraday trading session.