NEW YORK (TheStreet) -- Peabody Energy (BTU), the largest private-sector coal miner in the world, rose Thursday after the company announced it would review some of its more expensive Australian operations.
The stock was down in morning trading after the company reported a greater-than-expected loss in its first-quarter report but rallied upon the review announcement.
"We are having some pretty serious looks at couple of operations," said CEO Gregory Boyce on a conference call when asked about the company's closing some of its metallurgical coal operations, according to Reuters.
Peabody reported net loss attributable to shareholders of $48.5 million, or 18 cents a share, which widened from $23.4 million, or 9 cents a share, in the same period one year earlier. Revenue also dropped 7% to $1.63 billion from $1.75 billion, which was less than the Capital IQ consensus estimate of $1.69 billion.
The stock was up 3.33% to $18 at 2:37 p.m. on Thursday.
Separately, 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 some concerns, 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 generally high debt management risk, poor profit margins, weak operating cash flow and generally disappointing historical performance in the stock itself."