What to Expect for Arch Coal’s 3Q17 Earnings

Series overview

Arch Coal (ARCH) is expected to announce its 3Q17 earnings results on October 31, 2017, before market hours. In this series, let’s take a look at analyst’s expectations for Arch Coal’s 3Q17 earnings.

What to Expect for Arch Coal’s 3Q17 Earnings

Arch Coal’s stock performance

Arch Coal exited Chapter 11 bankruptcy protection on October 5, 2016, after successful financial restructuring. Between reporting its 2Q17 earnings on July 27, 2017, and October 24, 2017, Arch Coal stock fell approximately 3.5%.

President Trump signed an order on March 28, 2017, to repeal all guidelines implemented by the Obama administration to control climate change. The new regulation also includes the reversal of the moratorium on private companies leasing federal land to coal miners, which placed by the Department of Interior in January 2016. However, the reversal is not expected to enhance short-term coal production.

In June 2017, Trump withdrew the United States from the Paris Climate Accord on climate change. Despite this being potentially positive news for the coal industry, Arch Coal and its peers saw their stock prices fall.

Peer performance

In 2017, most coal stocks were outperformed by the VanEck Vectors Coal ETF (KOL), which tracks the performance of coal companies around the globe.

Westmoreland Coal’s (WLB) stock has fallen nearly 87.4% YTD (year-to-date) and nearly 47.3% in the last three months, while Alliance Resource Partners (ARLP) stock has fallen 11.1% YTD and a 0.3% in the last three months. However, Cloud Peak Energy’s (CLD) stock has gained approximately 31.7% in the last three months. The VanEck Vectors Coal ETF (KOL) has risen nearly 22.3% YTD basis and 13.2% in the last three months. Next, let’s look at analysts’ recommendations for Arch Coal.