NEW YORK (TheStreet) -- Shares of Peabody Energy (BTU - Get Report) were falling 7.3% to $4.52 Thursday after the coal company missed analysts' estimates for earnings and revenue in the first quarter.
Peabody Energy reported a loss of 39 cents a share for the first story, below the loss of 32 cents analysts expected for the quarter. Revenue fell 5.5% year over year to $1.54 billion for the quarter, compared to analysts' estimates of $1.61 billion for the quarter.
The company said the lower revenue for the first quarter was due to lower realized pricing and a U.S. production mix shift to the Southern Powder River Basin.
Peabody Energy said it expects 2015 U.S. coal demand to fall 80 to 100 million tons due to lower natural gas prices. The company also said it expects U.S. exports to fall 30 million to 40 million tons in 2015.
As a result of the current market conditions Peabody Energy lowered its 2015 U.S. coal sales volume estimates to 180 million to 190 million tons, down from a range of 190 million to 200 million tons.
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 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 generally high debt management risk, disappointing return on equity, weak operating cash flow, poor profit margins and generally disappointing historical performance in the stock itself."
You can view the full analysis from the report here: BTU Ratings Report