Alpha Metallurgical Resources (NYSE:AMR – Get Free Report) announced its quarterly earnings results on Friday. The energy company reported ($0.73) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.64) by ($0.09), FiscalAI reports. Alpha Metallurgical Resources had a negative net margin of 2.23% and a negative return on equity of 2.99%. The firm had revenue of $562.25 million during the quarter, compared to analyst estimates of $558.84 million. During the same quarter in the prior year, the business earned ($0.42) earnings per share. The business’s revenue was up 6.7% on a year-over-year basis.
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%
Alpha Metallurgical Resources stock traded up $3.91 during midday trading on Friday, reaching $147.18. The stock had a trading volume of 292,809 shares, compared to its average volume of 286,535. The firm’s fifty day simple moving average is $180.87 and its 200-day simple moving average is $183.32. Alpha Metallurgical Resources has a 1-year low of $133.64 and a 1-year high of $253.82. The stock has a market capitalization of $1.87 billion, a P/E ratio of -41.11 and a beta of 0.79. The company has a debt-to-equity ratio of 0.01, a quick ratio of 2.37 and a current ratio of 3.41.
Analysts Set New Price Targets
Several equities research analysts have commented on AMR shares. Weiss Ratings downgraded shares of Alpha Metallurgical Resources from a “sell (d)” rating to a “sell (e+)” rating in a research note on Tuesday, August 11th. Jefferies Financial Group reiterated a “hold” rating and issued a $160.00 target price on shares of Alpha Metallurgical Resources in a report on Tuesday, July 21st. Zacks Research upgraded Alpha Metallurgical Resources from a “strong sell” rating to a “hold” rating in a report on Monday, October 19th. UBS Group raised their price target 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. Finally, B. Riley Financial cut their price objective on Alpha Metallurgical Resources from $185.00 to $178.00 and set a “neutral” rating on the stock in a report on Monday, October 26th. Six analysts have rated the stock with a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the company currently has a consensus rating of “Reduce” and a consensus target price of $178.00.
Get Our Latest Stock Analysis on AMR
Insiders Place Their Bets
In other news, Director Kenneth Courtis purchased 15,000 shares of Alpha Metallurgical Resources stock in a transaction on Thursday, August 20th. The stock was purchased at an average price of $193.50 per share, with a total value of $2,902,500.00. Following the transaction, the director directly owned 1,015,394 shares in the company, valued at $196,478,739. The trade was a 1.50% increase in their position. The acquisition was disclosed in a document filed with the SEC, which can be accessed through this link. Over the last three months, insiders purchased 35,000 shares of company stock worth $7,388,400. Corporate 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.
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