Shares of Arch Resources Inc.
ARCH,
charged up 10.9% toward a three-month high in afternoon trading Thursday, after the producer and distributor of thermal coal reported a fourth-quarter profit that was more than double what was expected, boosted by “significantly improved” sales volumes, unit costs and cash margins, as well as a $253.3 million tax benefit. Net income rose to $470.5 million, or $23.18 a share, from $226.6 million, or $11.92 a share, in the year-ago period. That beat the average analyst estimate of $10.50, according to FactSet. Revenue grew 6.7% to $859.5 million, well above the FactSet consensus of $859.5 million, as metallurgical revenue increased 13.4% to $516.7 million and thermal revenue fell 2.1% to $342.7 million. Metallurgical tons sold rose to 2.3 from 2.0 while thermal tons sold fell to 16.1 from 18.8. The stock has gained 7.7% over the past three months and run up 38.6% over the past 12 months, while the S&P 500
SPX,
has tacked on 4.4% the past three months and declined 7.7% the past year.
Credit: marketwatch.com