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What to Expect from Peabody Energy’s 2Q16 Earnings



Series overview

Peabody Energy (BTUUQ) is expected to announce its 2Q16 earnings results on July 26, 2016, after Market hours. In this series, we’ll look at analysts’ expectations for the company’s earnings.

We’ll look at factors that led analysts to arrive at these expectations. We’ll also review the company’s 2016 guidance and some key indicators that investors should watch in the upcoming earnings release.

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Peabody Energy’s stock performance

On April 13, 2016, Peabody Energy filed for Chapter 11 bankruptcy protection. On April 14, BTUUQ stock hit an all-time low of $0.55. Since then, the stock has risen nearly 242% as of July 13, 2016.

Peer performances

The recent rebound in commodity prices helped Peabody Energy and its peers recover from new lows in 2016. Cloud Peak Energy (CLD) has risen nearly 14% since the beginning 2016 through July 13, 2016. Westmoreland Coal (WLB) and Alliance Resource Partners (ARLP) have risen almost 67% and 24%, respectively.

However, the VanEck Vectors Coal ETF (KOL), which tracks the overall performance of major coal mining companies around the world, rose nearly 66% during the same period.

Since coal competes with natural gas in power generation, any increase in natural gas prices could increase the demand for coal. That could, in turn, benefit coal mining companies such as Peabody Energy.

In the next part of this series, we’ll look at Peabody Energy’s analyst ratings and post-1Q16 developments.


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