Peabody Warning Still Somewhat In-Line (BTU)
Peabody Energy Corporation (NYSE: BTU) is issuing an earnings warning, but not from the normal logic behind most warnings. The warning is said to be due to Australia weather-related events. The first quarter financial results for the coal mining outfit…
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The company noted, “The target is based on recent storms and flooding in Queensland, which have halted port and rail movements, curtailed production at surface mines and restricted access to underground operations. The company places early estimates of the impacts at approximately $50 million for the first quarter related to lower production and sales volumes and higher costs due to volume impacts and recovery expenses. Actual quarterly results may vary depending on the pace of recovery from the flooding.”
Peabody shares are currently down about 1.1% at $30.21 against a 52-week trading range of $29.78 to $73.95. With as low as these shares were. at some point you would expect the bad news to be priced into the stock. The market value is almost $8.3 billion.
JON C. OGG
Contact [email protected] for any questions or corrections.
Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. www.247wallst.com.
