Warrior Met Coal (NYSE:HCC – Get Free Report) posted its earnings results on Wednesday. The company reported $0.93 EPS for the quarter, missing the consensus estimate of $1.55 by ($0.62), FiscalAI reports. Warrior Met Coal had a return on equity of 10.02% and a net margin of 13.05%. The business had revenue of $507.93 million for the quarter, compared to the consensus estimate of $505.84 million. During the same period in the previous year, the firm earned $0.70 earnings per share. The company’s revenue was up 54.6% on a year-over-year basis.
Here are the key takeaways from Warrior Met Coal’s conference call:
- Blue Creek’s ramp-up drove a 48% year-over-year increase in sales volume to 3.5 million short tons. Adjusted EBITDA rose 76% to $124 million, and Warrior generated $139 million in free cash flow; the company reaffirmed its 2026 guidance.
- Strong cash generation and increased liquidity supported the board’s declaration of a $2-per-share special dividend, in addition to the regular quarterly dividend. Management said excess cash is expected to be returned to shareholders for now, while it assesses whether the market can absorb more Blue Creek production.
- Higher freight, demurrage, royalties and inflation weighed on results, while Mine 7’s longwall move and difficult geology raised unit costs. Management expects freight and demurrage costs to remain above normal through year-end, and potentially longer, although Mine 7 has returned to normal operations.
- Steelmaking coal prices rose during the quarter, supported by Chinese production restrictions and other supply disruptions, but management expects volatility as supply conditions shift and Chinese steel demand remains weak. Warrior said near-term prices may remain supported but below September’s peak.
Warrior Met Coal Stock Performance
Shares of HCC stock traded up $0.90 on Wednesday, hitting $81.56. 1,101,898 shares of the stock were exchanged, compared to its average volume of 627,554. The firm’s 50 day moving average is $92.49 and its two-hundred day moving average is $89.95. Warrior Met Coal has a one year low of $64.66 and a one year high of $111.42. The company has a current ratio of 3.93, a quick ratio of 2.79 and a debt-to-equity ratio of 0.10. The firm has a market capitalization of $4.31 billion, a PE ratio of 19.61 and a beta of 0.75.
Warrior Met Coal Dividend Announcement
The company also recently declared a quarterly dividend, which will be paid on Friday, November 13th. Stockholders of record on Friday, November 6th will be given a dividend of $0.08 per share. This represents a $0.32 dividend on an annualized basis and a dividend yield of 0.4%. The ex-dividend date of this dividend is Friday, November 6th. Warrior Met Coal’s dividend payout ratio is currently 7.69%.
Analyst Ratings Changes
HCC has been the subject of a number of analyst reports. Wall Street Zen downgraded Warrior Met Coal from a “strong-buy” rating to a “buy” rating in a research note on Saturday. Jefferies Financial Group restated a “buy” rating on shares of Warrior Met Coal in a report on Thursday, October 29th. B. Riley Financial cut their target price on Warrior Met Coal from $123.00 to $122.00 and set a “buy” rating on the stock in a research report on Monday, October 26th. UBS Group upped their price target on Warrior Met Coal from $98.00 to $102.00 and gave the stock a “buy” rating in a report on Thursday, October 8th. Finally, Royal Bank Of Canada raised their price objective on Warrior Met Coal from $90.00 to $110.00 and gave the company a “sector perform” rating in a research note on Wednesday, September 16th. Four investment analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and an average target price of $104.33.
Read Our Latest Stock Analysis on Warrior Met Coal
Insider Buying and Selling at Warrior Met Coal
In other Warrior Met Coal news, Director Stephen D. Williams sold 4,800 shares of Warrior Met Coal stock in a transaction dated Wednesday, August 19th. The stock was sold at an average price of $104.23, for a total transaction of $500,304.00. Following the completion of the transaction, the director owned 30,303 shares of the company’s stock, valued at $3,158,481.69. The trade was a 13.67% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, CEO Walter Scheller sold 50,000 shares of the company’s stock in a transaction dated Monday, August 24th. The shares were sold at an average price of $110.00, for a total value of $5,500,000.00. Following the sale, the chief executive officer owned 267,793 shares in the company, valued at approximately $29,457,230. This represents a 15.73% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 104,800 shares of company stock worth $11,250,304. Company insiders own 2.10% of the company’s stock.
Warrior Met Coal Company Profile
Warrior Met Coal, Inc is a mining company focused on the production and export of high-quality metallurgical coal, also known as met coal. Its products are used primarily by steelmakers in the blast-furnace steelmaking process, where metallurgical coal is converted into coke to support the production of iron and steel.
The company operates underground coal mines and related processing facilities in the Brookwood coal-producing region of Alabama. Warrior Met Coal primarily produces premium hard coking coal and sells its products to customers in international steel markets, serving regions that include Europe, Asia, and the Americas.
Warrior Met Coal was formed from the assets of Walter Energy after Walter Energy’s bankruptcy and began operating as an independent public company in 2016.
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