Yahoo Finance Alpha Metallurgical Resources, Inc. Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now
Alpha Metallurgical Resources, Inc. (NYSE:AMR) shareholders are probably feeling a little disappointed, since its shares fell 6.8% to US$300 in the week after its latest quarterly results. Statutory earnings per share of US$9.59 unfortunately missed expectations by 11%, although it was encouraging to see revenues of US$864m exceed expectations by 2.2%. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
View our latest analysis for Alpha Metallurgical Resources
Following the recent earnings report, the consensus from two analysts covering Alpha Metallurgical Resources is for revenues of US$3.14b in 2024. This implies a chunky 8.2% decline in revenue compared to the last 12 months. Statutory earnings per share are expected to tumble 36% to US$28.29 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$3.21b and earnings per share (EPS) of US$33.70 in 2024. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a substantial drop in earnings per share estimates.
The analysts made no major changes to their price target of US$375, suggesting the downgrades are not expected to have a long-term impact on Alpha Metallurgical Resources' valuation.
Of course, another way to look at these forecasts is to place them into context against the industry itself. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 11% by the end of 2024. This indicates a significant reduction from annual growth of 18% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 4.9% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Alpha Metallurgical Resources is expected to lag the wider industry.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Alpha Metallurgical Resources. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.
Before you take the next step you should know about the 3 warning signs for Alpha Metallurgical Resources (1 makes us a bit uncomfortable!) that we have uncovered.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
