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Arch Coal (ARCH) Q4 Earnings Beat on Coking Coal Sales Growth

Arch Coal Inc.ARCH delivered fourth-quarter 2018 operating earnings of $4.44 per share, which beat the Zacks Consensus Estimate of $3.28 by 35.4%. The bottom line also improved 7.8% on a year-over-year basis.

Total Revenues

Total revenues in the reported quarter were $650.9 million, which beat the Zacks Consensus Estimate of $558 million by 16.6%. The reported revenues also improved 7.8% on a year-over-year basis.

Segment Details

In the Metallurgical segment, the company sold 2.1 million tons of coal compared with 1.8 million tons in the prior-year quarter. The company recorded cash margins of $46.69 per ton compared with $31.32 in the year-ago quarter, owing to higher selling price of coal.

During the quarter, Powder River Basin segment's cash margin per ton was down 20.8% year over year. The company sold 19.5 million tons, in line with the year-ago quarter.

In the Other Thermal segment, the company posted a cash margin of $6.3 per ton compared with $10.55 in the year-ago quarter.

Arch Coal Inc. Price, Consensus and EPS Surprise

Arch Coal Inc. Price, Consensus and EPS Surprise | Arch Coal Inc. Quote

Financial Highlights

Cash and cash equivalents as of Dec 31 2018 were $264.9 million compared with $273.4 million at 2017-end.

Long-term debt as of Dec 31, 2018 was $300.2 million compared with $310.1 million at the end of 2017.

Cash provided from operating activities in 2018 was $417.9 million compared with $396.5 million a year ago.

Arch Coal continues to increase its shareholders' value through dividends and share repurchases. The company returned nearly $640 million to its shareholders via share buybacks and dividends over the course of last seven quarters.

Guidance

Arch Coal expects thermal coal sales volume guidance for 2019 within 80-85 million tons. It reaffirmed coking coal volume guidance in the range of 6.6-7 million tons.

Zacks Rank

Arch Coal sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .

Other Releases

Peabody Energy Corp. BTU announced fourth-quarter 2018 earnings of 88 cents per share, which surpassed the Zacks Consensus Estimate of 68 cents by 29.4%.

CONSOL Coal Resources LP's CCR fourth-quarter 2018 operating earnings of 59 cents per unit beat the Zacks Consensus Estimate of 48 cents.

CONSOL Energy Inc. CEIX delivered fourth-quarter 2018 adjusted earnings of $1.41 per share, which beat the Zacks Consensus Estimate of 76 cents by 85.5%.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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