NEW YORK (TheStreet) -- Peabody Energy (BTU) was falling 3.02% to $16.86 on Thursday afternoon after the coal-mining company reported a 14% decline in quarterly revenue thanks to a work stoppage at two of its Australian mines and weak prices for metallurgical coal.
The drop was steeper than analysts expected. Total revenue declined to $1.74 billion in the quarter that ended on Dec. 31; analysts polled by Thomson Reuters I/B/E/S expected total revenue of $1.77 billion. Peabody's Australian operation also dropped 20%.
Peabody expects to report a first quarter adjusted EPS between a loss of 10 cents and a profit of 14 cents. Analysts expect a loss of 4 cents a share.
TheStreet Ratings team rates PEABODY ENERGY CORP as a "sell" with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:
"We rate PEABODY ENERGY CORP (BTU) a SELL. This is driven by a few notable weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally high debt management risk, disappointing return on equity, poor profit margins and weak operating cash flow."
- You can view the full analysis from the report here: BTU Ratings Report