Peabody Outlook in Line With Consensus

Peabody Energy stock has fallen 3.3% to $45.07 after the company reported a fall in first quarter earnings and 2010 guidance roughly in line with analysts' consensus estimate.
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ST. LOUIS, Mo. (TheStreet) -- Peabody Energy (BTU) - Get Report stock has fallen 2.1% to $45.64 after the company reported a fall in first quarter earnings and 2010 guidance roughly in line with analysts' consensus estimate.

Peabody says that higher metallurgical and seaborne thermal prices are expected to drive second quarter 2010 EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) to $350 to $425 million with adjusted earnings per share of 50 cents to 65 cents. The company is targeting 2010 EBITDA of $1.6 to $1.9 billion with adjusted earnings of $2.45 to $3.15 a share, excluding currency re-measurement.

Analysts surveyed by Thomson Reuters were expecting full-year earnings of $3.06 a share.

"With rising Australian volumes and pricing and a growing global trading and brokerage business, we have enormous capacity to capitalize on expanding Asian coal demand," Peabody CEO Gregory Boyce said.

For the first quarter, Peabody announced net income of $136.7 million compared with $175.2 million the year before. Adjusted income from continuing operations was 52 cents a share, up 2 cents from the previous year. Revenue for the quarter rose 4% to $1.52 billion. The Wall Street consensus estimate for Peabody's first quarter earnings was 41 cents on revenue of $1.52 billion.

-- Reported by Andrea Tse in New York

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