Coal producer Walter Energy, Inc. ( WLT ) on Wednesday cut its third and fourth quarter earnings forecasts substantially, sending investors heading for the exits on its stock in droves.
The company said it now expects third quarter net income to range from $1 to $1.16 per share, which would badly miss analyst estimates of $3.23 per share.
For the upcoming fourth quarter, Walter predicts earnings of $2.63 to $2.95, which would also fall short of analysts' expectations for $3.16.
Additionally, the company said it now expects metallurgical coal sales of 5.2 million metric tons for the second half of 2011, down 12% from its previous outlook of 5.9 million metric tons.
Walter Energy shares fell $9.75, or -13%, in premarket trading Wednesday.
The Bottom Line
Shares of Walter Energy ( WLT ) have a .67% dividend yield, based on last night's closing stock price of $75.00. The stock has technical support in the $65-$70 price area. If the shares can firm up, we see overhead resistance around the $80-$83 price levels.
Walter Energy, Inc. ( WLT ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.0 out of 5 stars.
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