Cloud Peak Energy’s CLD loss of 10 cents per share in first-quarter 2018 was wider than the Zacks Consensus Estimate of a loss of 8 cents.
Revenues
Revenues totaled $216.3 million, up approximately 10.5% year over year from $195.7 million. The top line, however, missed the Zacks Consensus Estimate of $231 million by 6.36%.
Cloud Peak Energy Inc Price, Consensus and EPS Surprise
Segment Performance
Owned and Operated Mines
In the first quarter, the company sold 12.3 million tons of coal compared with 14 million tons in the year-ago quarter. Realized price per ton of coal during the quarter was $12.20, up nearly 0.8% year over year. Revenues from this segment were $153.7 million, down 11.46% from $173.6 million a year ago. The downside was caused by lower shipments at the company’s Antelope and Cordero Rojo mines.
Logistics and Related Activities
Total tons delivered during the reported quarter were 1.4 million, up from 0.6 million in the year-ago quarter. Revenues from this segment amounted to $79.6 million, surging 182.27% from $28.2 million in the year-ago quarter. Strong Asian utility demand and current pricing drove the company’s export and boosted its revenues.
Highlights of the Release
Total costs and expenses were $216.7 million, up 6.07% from $204.3 million in the year-ago quarter. This was primarily due to proportionate increase in cost of production.
The realized price of per ton sold was $12.20 compared with $12.10 in the year-ago period. The average per ton cost of coal sold during the quarter was $10.94, up from $9.87 in the first-quarter of 2017. As a result, cash margin of per ton coal sold declined 43.5% to $1.26 from $2.23 in the year-ago quarter.
The company expects to see greater balance in coal supply and demand and improvements in coal pricing in the latter part of the year. Export demand remained strong, allowing it to export 1.4 million tons during the quarter. The company currently has 3.3 million tons of exports under contract and expects to export approximately 5.5 million tons in 2018.
Financial Update
As of Mar 31, 2018, the company’s cash and cash equivalents were $127.8 million, up from $107.9 million as of Dec 31, 2017.
Senior notes were $406.3 million, higher than $405.3 million as of Dec 31, 2017.
Cash provided in first-quarter 2018 in operating activities was $24.08 million compared with $19.70 million in the year-ago quarter.
Guidance
For 2018, Cloud Peak Energy expects coal shipment from three mines in the range of 52-56 million tons. Out of the expected shipments, nearly 47 million tons are committed with a fixed price of $12.28 per ton.
Capital expenditures for 2018 are expected in the range of $15-$25 million.
Peer Releases
Peabody Energy Corporation BTU reported first-quarter 2018 adjusted earnings of 83 cents per share, missing the Zacks Consensus Estimate of 84 cents per share by 1.2%.
Arch Coal Inc. ARCH reported first-quarter 2018 adjusted earnings of $2.95 per share, missing the Zacks Consensus Estimate of $4.00 per share by 26.25%.
Upcoming Peer Releases
CONSOL Coal Resources LP CCR is anticipated to release 2018 first-quarter earnings on May 3. The Zacks Consensus Estimate for the quarter is pegged at 43 cents.
Zacks Rank & Key Pick
Cloud Peak has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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