This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Peabody Reports $1B 4Q Loss; Shares Still Jump

ST. LOUIS (AP) â¿¿ Coal producer Peabody Energy Corp. lost $1.01 billion in the fourth quarter as the price of coal used in steel manufacturing fell by half from its 2011 high.

The company said there have been signs of recovery in coal prices but from very low levels. Those low prices prompted it to write down the value of some assets during the quarter, which deepened its loss.

The company's first-quarter outlook was short of Wall Street expectations, but the company said it expects earnings to rise this year as demand and prices improve. It didn't give a specific earnings forecast.

Peabody shares rose 93 cents, or 3.7 percent, to $26.09 in morning trading. Shares had dropped about 30 percent over the past 52 weeks.

For the quarter that ended in December, the St. Louis company's loss was $3.78 per share and compared with net income of $222.4 million, or 82 cents per share, a year earlier. The company said that excluding the cost of closing down mines and marking down the value of some of its assets, the loss would have been $1.12 per share.

Revenue fell 9.5 percent to $2.02 billion from $2.23 billion.

Analysts expected earnings of 25 cents per share on revenue of $1.93 billion, according to FactSet.

Peabody said it was encouraged by a pickup in economic growth in China and expects coal demand in the U.S. to rise as prices increase for natural gas, a fuel that competes with coal for use in generating electricity. It also expects a boost from international demand for coal used in power generation.

The company has pulled back in the United States while increasing business in Australia. It expects higher demand for coal used in power generation, especially in Australia and Indonesia.

The company said it expects earnings to rise as 2013 unfolds due to expected increased production in Australia and higher prices. It didn't give a forecast of earnings per share. Analysts expect the company to earn 96 cents per share in 2013 on revenue of about $8 billion.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,672.60 -141.38 -0.79%
S&P 500 2,051.82 -11.33 -0.55%
NASDAQ 4,757.8790 +7.4820 0.16%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs