Overview
Warrior Met Coal Q2 revenue beats analyst expectations despite weaker market conditions
Net income for Q2 falls sharply from last year due to lower coal prices
First commercial sales of Blue Creek coal achieved ahead of schedule
Outlook
Warrior expects full-year coal sales of 8.8 - 9.5 mln short tons
Company projects full-year coal production of 8.3 - 9.1 mln short tons
Warrior anticipates cash cost of sales $110 - $120 per short ton
Company plans $225 - $250 mln capital spending for Blue Creek project
Result Drivers
BLUE CREEK SALES - First commercial sales of Blue Creek steelmaking coal achieved ahead of schedule, contributing to strong cash margins
COST STRUCTURE - Inclusion of Blue Creek coal in sales mix reduced cash cost of sales due to lower inherent cost structure
PRODUCTION INCREASE - Total sales and production volumes increased by 6% compared to prior year, driven by Blue Creek coal
Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$297.50 mln
$291.70 mln (5 Analysts)
Q2 EPS
$0.11
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the iron & steel peer group is "buy"
Wall Street's median 12-month price target for Warrior Met Coal Inc is $56.50, about 4.1% above its August 5 closing price of $54.17
The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 14 three months ago
Press Release: ID:nBwbdZtfHa
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)