Stock Track | SunCoke Energy Plummets 5.58% Despite Beating Q3 Estimates, Outlook Disappoints

Stock Track11-04

SunCoke Energy (NYSE: SXC) shares plummeted 5.58% in early trading on Tuesday, despite the company reporting better-than-expected third-quarter results. The steep decline suggests that investors may be focusing on the company's full-year outlook, which appears to have fallen short of market expectations.

The coke producer reported third-quarter earnings per share of $0.26, significantly beating the analyst consensus estimate of $0.16. However, this represents a 27.78% decrease from the same period last year. Quarterly revenues came in at $487 million, surpassing the analyst consensus estimate of $349.3 million by 39.42%, though slightly down by 0.63% year-over-year. The company's adjusted EBITDA for the quarter stood at $59.1 million.

Despite the strong quarterly performance, SunCoke's full-year outlook seems to have disappointed investors. The company expects fiscal year 2025 net income to be between $48-58 million, with adjusted EBITDA projected at $220-225 million. The adjusted free cash flow is anticipated to be in the range of $62-72 million. Additionally, SunCoke forecasts capital expenditures of $70 million for the year and expects domestic coke total production to be about 3.9 million tons. The market's negative reaction suggests that these projections may have fallen short of investor expectations, leading to the sell-off despite the earnings beat.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment