Peabody Q3 adjusted EBITDA beats estimates on strong seaborne thermal coal volumes

Overview

• Peabody Q3 adjusted EBITDA beats analyst expectations, driven by increased revenues

• Net income for Q3 declines due to costs related to terminated acquisition

• Company declares $0.075 per share dividend on common stock

Outlook

• Peabody expects Q4 seaborne thermal volume of 3.2 mln tons

• Q4 seaborne metallurgical volume anticipated at 2.4 mln tons

• Peabody projects Q4 PRB volume at 23 mln tons

Result Drivers

• PRB SHIPMENTS - Increased Powder River Basin shipments contributed to higher revenues and Adjusted EBITDA

• SEABORNE THERMAL VOLUMES - Better-than-expected seaborne thermal coal volumes supported Adjusted EBITDA growth

• METALLURGICAL COAL COSTS - Lowest metallurgical coal costs in years improved segment profitability

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the coal peer group is "buy"

• Wall Street's median 12-month price target for Peabody Energy Corp is $28.70, about 5.9% above its October 29 closing price of $27.00

• The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 8 three months ago

Press Release: ID:nPn4XJNk5a

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)