Alpha Metallurgical Resources (NYSE:AMR) Posts Quarterly Earnings Results, Misses Estimates By $0.09 EPS

Alpha Metallurgical Resources (NYSE:AMR) posted its quarterly earnings data on Friday. The energy company reported ($0.73) EPS for the quarter, missing the consensus estimate of ($0.64) by ($0.09), FiscalAI reports. The business had revenue of $562.25 million during the quarter, compared to analysts’ expectations of $558.84 million. Alpha Metallurgical Resources had a negative net margin of 2.23% and a negative return on equity of 2.99%. The company’s revenue for the quarter was up 6.7% compared to the same quarter last year. During the same period in the previous year, the business posted ($0.42) EPS.

Here are the key takeaways from Alpha Metallurgical Resources’ conference call:

• Third-quarter results improved sequentially: adjusted EBITDA rose to $29.4 million from $25.6 million in Q2, while shipments increased to 3.9 million tons from 3.5 million.
• DTA expects to replace its storm-damaged stacker reclaimer, a custom project estimated to take about two years. Alpha says alternative terminal capacity and insurance support should help limit disruption and significant capital outlays, but management acknowledged logistics could constrain additional volume growth.
• For 2027, Alpha expects to ship 14.3 million–15.7 million total tons and forecasts metallurgical coal costs of $104–$110 per ton. It has fixed-price domestic contracts for 3.5 million tons at an average $135.48 per ton, with remaining sales dependent on seaborne-market opportunities.
• Management said global steel demand remains weak, and several metallurgical coal benchmarks declined or were unchanged after quarter-end. The company also cited ongoing cost pressures, including diesel and other inputs, although it expects the rate of cost increases to moderate.

Alpha Metallurgical Resources Stock Up 2.7%

AMR stock traded up $3.91 during mid-day trading on Friday, reaching $147.18. The company had a trading volume of 292,809 shares, compared to its average volume of 286,535. The company has a debt-to-equity ratio of 0.01, a quick ratio of 2.37 and a current ratio of 3.41. The company has a market capitalization of $1.87 billion, a price-to-earnings ratio of -41.11 and a beta of 0.79. The firm has a fifty day simple moving average of $182.50 and a 200 day simple moving average of $183.75. Alpha Metallurgical Resources has a fifty-two week low of $133.64 and a fifty-two week high of $253.82.

Wall Street Analysts Forecast Growth

Several equities research analysts recently weighed in on AMR shares. B. Riley Financial cut their target price on shares of Alpha Metallurgical Resources from $185.00 to $178.00 and set a “neutral” rating on the stock in a research note on Monday, October 26th. Weiss Ratings cut shares of Alpha Metallurgical Resources from a “sell (d)” rating to a “sell (e+)” rating in a research report on Tuesday, August 11th. Zacks Research upgraded shares of Alpha Metallurgical Resources from a “strong sell” rating to a “hold” rating in a research note on Monday, October 19th. Wall Street Zen downgraded shares of Alpha Metallurgical Resources from a “hold” rating to a “sell” rating in a research note on Saturday, August 8th. Finally, UBS Group upped their price objective on Alpha Metallurgical Resources from $160.00 to $180.00 and gave the stock a “neutral” rating in a research report on Thursday, October 8th. Six investment analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, Alpha Metallurgical Resources presently has an average rating of “Reduce” and an average price target of $178.00.

Insider Activity

In related news, Director Kenneth Courtis acquired 15,000 shares of the stock in a transaction dated Thursday, August 20th. The stock was acquired at an average cost of $193.50 per share, with a total value of $2,902,500.00. Following the completion of the transaction, the director owned 1,015,394 shares in the company, valued at $196,478,739. This represents a 1.50% increase in their position. The purchase was disclosed in a filing with the SEC, which can be accessed through this hyperlink. In the last three months, insiders bought 35,000 shares of company stock valued at $7,388,400. Company insiders own 18.20% of the company’s stock.

About Alpha Metallurgical Resources

Alpha Metallurgical Resources, Inc is a mining company focused primarily on the production and sale of metallurgical coal. Its coal is used by steelmakers and coke producers in the manufacturing of steel, with additional sales of thermal coal for power generation. The company serves domestic and international customers through a network of mines and related operations.

Alpha operates principally in the Central Appalachian region, with mining assets in West Virginia and Virginia. Its activities include underground and surface mining, coal preparation, processing, and transportation.