Peabody Energy Corporation Stock Hold Recommendation Reiterated (BTU)
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- BTU's revenue growth has slightly outpaced the industry average of 1.2%. Since the same quarter one year prior, revenues slightly increased by 0.9%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- PEABODY ENERGY CORP's earnings per share declined by 29.1% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, PEABODY ENERGY CORP increased its bottom line by earning $3.74 versus $2.86 in the prior year. For the next year, the market is expecting a contraction of 51.3% in earnings ($1.82 versus $3.74).
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income has significantly decreased by 28.1% when compared to the same quarter one year ago, falling from $284.80 million to $204.70 million.
- The debt-to-equity ratio of 1.09 is relatively high when compared with the industry average, suggesting a need for better debt level management. Along with the unfavorable debt-to-equity ratio, BTU maintains a poor quick ratio of 0.75, which illustrates the inability to avoid short-term cash problems.
--Written by a member of TheStreet Ratings Staff. FREE from Real Money's Jim Cramer: Winners and Losers Election 2012 - Steps to take NOW so you can profit no matter who is in charge! Free Download Now
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