Markets

Cloud Peak (CLD) Incurs Loss in Q1, Revenues Lag Estimates

A generic image of a stock chart
Credit: Shutterstock photo

Coal producer, Cloud Peak EnergyCLD reported a loss of 30 cents per share in the first quarter of 2017. The Zacks Consensus Estimate was pegged at a breakeven.

Revenue

Cloud Peak Energy's quarterly revenues of $195.7 million increased approximately 8% year over year from $181.2 million. However, the top line lagged the Zacks Consensus Estimate of $237.8 million by 17.7%.

Segment Performance

Owned and Operated Mines

In the quarter, the company sold 14 million tons of coal compared with 13 million tons in the year-ago period. Realized price per ton of coal during the quarter was $12.10, down nearly 4.3% year over year. Revenues from this segment were $173.6 million, reflecting an increase of 3.8% from $167.2 million in the year-ago quarter.

Logistics and Related Activities

Total tons delivered during the quarter was 0.6 million, up from 0.3 million tons in the prior-year quarter. Revenues from this segment increased to $28.2 million, reflecting a surge of 101.4% from $14 million in the year-ago quarter.

Highlight of the release

Total costs and expenses in the reported quarter were $202.7 million, a decrease of 2% from $206.9 million in the year-ago quarter. This was primarily due to a decrease in selling, general and administrative expenses. It also reflects the impact of Cloud Peak's focus on reducing the labor and benefit cost across the company.

The average cost per ton coal sold during the quarter was $9.78 per ton, down from $11.15 per ton in the first quarter of 2016. The cash margin of per ton coal sold in the quarter improved 54.7% to $2.32 from $1.50 in the year-ago quarter due to the company's cost-control initiatives.

Cloud Peak Energy Inc Price, Consensus and EPS Surprise

Cloud Peak Energy Inc Price, Consensus and EPS Surprise | Cloud Peak Energy Inc Quote

Financial Update

As of Mar 31, 2017, the company's cash and cash equivalents were $100.5 million, up from $79.4 million as of Mar 31, 2016.

Senior notes as of Mar 31, 2017, were $414.7 million, lower than $491.53 million as of Mar 31, 2016.

Cash provided by operating activities in first quarter of 2017 was $19.7 million compared with ($0.65) million in the first quarter of 2016.

Capital expenditure for the quarter was $4.1 million, lower than the year-ago level of $7.6 million.

Guidance

Cloud Peak Energy expects coal shipment in 2017 from three mines in the range of 55−60 million tons. Out of the expected shipments nearly 55 million tons are committed with a fixed price of $12.19 per ton.

Capital expenditures for the full year are expected to be in the range of $20-$30 million.

Price Movement

In the last six months, Cloud Peak underperformed the Zacks categorized coal industry. The company's shares declined 45.3% compared with the industry's loss of 9%.

Upcoming Peer Releases

CNX Coal Resources LP CNXC is expected to release first-quarter 2017 earnings on May 1. The Zacks Consensus Estimate for the quarter is pegged at 55 cents.

Arch Coal Inc. ARCH is expected to release first-quarter 2017 earnings on May 2. The Zacks Consensus Estimate for the quarter is pegged at $2.06.

CONSOL Energy Inc. CNX is expected to release first-quarter 2017 earnings on May 2. The Zacks Consensus Estimate for the quarter is pegged at 11 cents.

Zacks Rank

Cloud Peak has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .

Zacks' Hidden Trades

While we share many recommendations and ideas with the public, certain moves are hidden from everyone but selected members of our portfolio services. Would you like to peek behind the curtain today and view them?

Starting now, for the next month, I invite you to follow all Zacks' private buys and sells in real time from value to momentum...from stocks under $10 to ETF to option movers...from insider trades to companies that are about to report positive earnings surprises (we've called them with 80%+ accuracy). You can even look inside portfolios so exclusive that they are normally closed to new investors.

Click here for Zacks' secret trade>>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

CONSOL Energy Inc. (CNX): Free Stock Analysis Report

Cloud Peak Energy Inc (CLD): Free Stock Analysis Report

CNX Coal Resources LP (CNXC): Free Stock Analysis Report

Arch Coal Inc. (ARCH): Free Stock Analysis Report

To read this article on Zacks.com click here.

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.

In This Story

ARCH CNX

Other Topics

Stocks