SunCoke Energy (NYSE:SXC) shares plunged 5.58% in early trading on Tuesday, despite the company reporting better-than-expected third-quarter results. The sharp decline suggests investors may be focusing on the company's full-year outlook and year-over-year performance rather than the quarterly beat.
For the third quarter, SunCoke reported earnings per share of $0.26, surpassing the analyst consensus estimate of $0.16 by 62.5%. However, this represents a 27.78% decrease from the $0.36 per share earned in the same period last year. The company's quarterly revenue came in at $487 million, beating the analyst consensus estimate of $349.3 million by 39.42%, but still showing a slight 0.63% year-over-year decline from $490.1 million.
While SunCoke provided its full-year outlook, including adjusted EBITDA of $220-225 million, net income of $48-58 million, and adjusted free cash flow of $62-72 million, these figures may have fallen short of investor expectations. The company also announced plans for $70 million in capital expenditures for the fiscal year. The market's negative reaction could indicate concerns about SunCoke's growth prospects and profitability in the face of challenging market conditions, despite its ability to outperform quarterly estimates.
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