NEW YORK (TheStreet) -- Shares of Walter Energy (WLT) were falling 10.1% to 98 cents in pre-market trading Tuesday after the coal producer missed analysts' estimates for earnings and revenue in the fourth quarter.
Walter Energy reported a loss of of $1.97 a share for the fourth quarter, below the Capital IQ Consensus Estimate of a loss of $1.60 a share. Revenue fell 39.5% year over year to $285.6 million, missing analysts' estimates of $331.03 million.
The company said the decrease in revenue was due to the average price of met coal falling to $25.19 a metric ton in the quarter, and a drop in met coal sales of 900,000 metric tons.
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Walter Energy expects to sell 8.5 million to 9 million metric tons of met coal in 2015.
TheStreet Ratings team rates WALTER ENERGY INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate WALTER ENERGY INC (WLT) a SELL. This is driven by multiple 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 disappointing return on equity, poor profit margins, generally disappointing historical performance in the stock itself and generally high debt management risk."
You can view the full analysis from the report here: WLT Ratings Report