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.
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