Why Is Arch Resources (ARCH) Down 1.2% Since Last Earnings Report?

A month has gone by since the last earnings report for Arch Resources (ARCH). Shares have lost about 1.2% in that time frame, underperforming the S&P 500.Will the recent negative trend continue leading up to its next earnings release, or is Arch Resources due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts. Arch Resources Q3 Earnings Lag Estimates, Revenues BeatArch Resources, Inc. reported third-quarter 2024 earnings per share (EPS) of 41 cents, which missed the Zacks Consensus Estimate of $1.38 by 70.3%. The bottom line declined from the year-ago level of $3.91.Revenues of ARCHTotal revenues were $617.9 million, which beat the Zacks Consensus Estimate of $536 million by 15.3%. However, the top line decreased 17% from $744.6 million in the year-ago quarter.ARCH’s Segmental DetailsIn the Metallurgical segment, ARCH sold 2.4 million tons of coal, up 4.3% from the prior-year figure. Cash margins were $21.74 per ton compared with $54.7 in the year-ago quarter.In the Thermal segment, the company sold 13.8 million tons of coal, down 17.9% from the prior-year figure. Cash margins were 86 cents per ton compared with $1.34 in the prior-year period.Highlights of ARCH’s Earnings ReleaseDuring the third quarter, Arch Resources managed through a three-week outage of the ship loader at Curtis Bay Terminal that reduced coking coal shipments by an estimated 200,000 tons.The company paid down $5.1 million in debt and ended the third quarter with a net cash position of $127.7 million.ARCH announced plans to merge with CONSOL Energy Inc. to form a leading global player in seaborne metallurgical and high-rank thermal coal markets. The merger is expected to unlock additional value creation from $110 million to $140 million of annual cost savings and synergies. The merger is expected to be closed by the end of the first quarter of 2025. Completion of the merger is subject to the satisfaction of the remaining customary closing conditions, including approval by the companies' stockholders.ARCH’s Financial HighlightsCash and cash equivalents and short-term investments totaled $219.6 million as of Sept. 30, 2024, compared with $287.8 million as of Dec 31, 2023.Cash provided by operating activities in the first nine months of 2024 was $212.4 million compared with $453.8 million in the year-ago period. How Have Estimates Been Moving Since Then?It turns out, fresh estimates have trended downward during the past month.The consensus estimate has shifted -14.84% due to these changes.VGM ScoresCurrently, Arch Resources has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. Following the exact same course, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. It's no surprise Arch Resources has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Arch Resources Inc. (ARCH): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks