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Arch Coal’s Q2 Profit and Full-Year Outlook Miss the Mark (ACI)

Coal producer Arch Coal Inc ( ACI ) on Friday posted lower-than-expected second quarter earnings and offered a full-year forecast well below analysts' view.

The St. Louis-based company reported second quarter net income of $11.1 million, or 6 cents per share, compared with $66.2 million, or 41 cents per share, in the year-ago period. Excluding one-time charges, adjusted profit was 44 cents per share.

Revenue rose 29% from last year to $985.1 million.

On average, Wall Street analysts expected a much higher profit of 60 cents per share, albeit on lower revenue of $955.65 million.

Looking ahead, the company predicted full-year adjusted earnings of $1.75 to $2.15 per share, which would be well below analyst estimates of $2.41.

Arch Coal shares fell 87 cents, or -3.4%, in premarket trading Friday.

The Bottom Line

Shares of Arch Coal ( ACI ) have a 1.71% dividend yield, based on last night's closing stock price of $25.77. The stock has technical support in the $25-$26 price area. If the shares can firm up, we see overhead resistance around the $28-$30 price levels.

Arch Coal Inc ( ACI ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.2 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

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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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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