Why Is Peabody Energy (BTU) Stock Down 20% Today?

Peabody Energy (NYSE:BTU) stock is taking a beating on Thursday as investors react to the company’s first-quarter 2022 earnings report.

Peabody Energy (BTU stock) coal mining company logo seen displayed on smart phone

Source: IgorGolovniov / Shutterstock.com

The bad news for BTU stock starts with the company reporting diluted earnings per share of -88 cents. That’s a wider loss than the -81 cents reported during the same time last year. It’s also nowhere close to the $2.13 per share that Wall Street was expecting for the quarter.

Further harming BTU stock is the coal company’s revenue of $691.4 million. While that’s up from the $651.3 million reported in Q1 2021, it’s a far cry from the $1.11 billion in revenue that analysts were looking for.

So what caused Peabody Energy to miss estimates so harshly this quarter? The company signed a deal to sell coal at $84 per metric ton before volatility sent prices soaring higher. This resulted in it suffering a $301 million charge from its hedge program during the period.

Jim Grech, president and CEO of Peabody Energy, said the following about its outlook for the rest of the year.

“Strong global market dynamics persist for our products, driving prices to unprecedented levels globally. With projected increased sales, we remain poised to deliver a strong 2022.”

Heavy trading of BTU stock follows the company’s most recent earnings report. As of this writing, more than 15 million shares have changed hands. For the record, its daily average trading volume is about 11 million shares.

BTU stock is down 12.2% as of Thursday morning but is up 105.1% since the start of the year.

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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.


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