Alpha Metallurgical Resources Inc. (NYSE: AMR) has confirmed that the release date for its quarterly earnings report which is on Monday, March 7, 2022, before the market opens.
What to look for: During the release of the last quarter's results, the company's CEO David Stetson stated that they are well-positioned to leverage market opportunities evidenced by the ability of the company to deliver. In addition, the company has made considerable progress in deleveraging itself. As a result, the company is optimistic about having a positive 2022. However, in light of high labor costs, the company increased its cost of sales guidance for FY 2021, and when the company releases results, investors will be keen on how this has affected performance.
Earnings: Stockearning’s Estimated EPS performance in Q4 2021 is expected to be 11.94 per share. The company reported a net income of $4.43 per diluted share in the third quarter. Historical EPS Performance shows that in the last 12 quarters, the company has topped estimates eight times (42%) and missed 11 times (57%).
Revenue: The company reported a net income of $83.7 million in the third quarter compared to a net loss of $18.6 million in the quarter before. Met segment cost of coal sales was up $76.62 per yon in the third quarter. Also, the company has met segment revenue of $635.4 million and revenue of $21.7 from other segments.
Stock movement: AMR shares have gained 62.6% since the company released its last earnings release. Interestingly, following the earnings release, the company’s shares have been UP 3 times in the past six quarters. So, the historical price reaction suggests a 50% probability of the share price going UP following the earnings release. According to the Stockearning algorithm, the predicted volatility on the first day is +/-11%, while the predicted volatility on the seventh day is +/-18%.
What analysts are saying: B. Riley analyst Lucas Pipes raised his price target on the stock from $77 to $92 and maintained a buy rating on the shares. Met coal price has set major pricing milestone yet again in recent weeks and months, Pipes writes in a research note, yet the reaction from industry and investors alike has become one of relative silence. Instead, investors would flock towards producers with "excellent operational performance" and the ability and willingness to distribute profits to investors, according to the analyst, who raised his near-term and long-term price decks for the sector.
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