Commodities & Metals
Election Outcome, Poor Pricing Hammer James River Coal
Published:
Last Updated:
The company’s CEO said:
We are very pleased to have the uncertainty of the U.S. presidential election behind us. We believe that this issue caused a temporary slowdown in economic growth both in the United States and globally. The slowdown in growth, combined with warm weather last winter, has contributed to an unusually weak market for thermal and metallurgical coal. Hopefully, this condition will be corrected shortly.
The company offered no word on guidance, but the consensus estimates call for a fourth-quarter net loss of $1.04 per share on revenues of $259.65 million. For the full year, the loss estimate is $3.31 per share on revenue of $990.79 million.
James River did comment on its sales positions for 2013, however, and the news is not so good there. As of yesterday, the company has agreed to ship 3.4 million tons of central Appalachian coal at an average price of $74.04 per ton, down more than $5 a ton from its average pricing in August. The company also priced 2.34 million tons of Midwestern coal at $45.25 per ton in November, a modest decline of $0.10 a ton.
Weaker pricing and general concern that coal burning will face increasing pressure in a second Obama administration have sunk the company’s stock price today. Competitors Peabody Energy Corp. (NYSE: BTU), Arch Coal Inc. (NYSE: ACI), and Alpha Natural Resources Inc. (NYSE: ANR) are down 8.5%, 11.7% and 10.5%, respectively today, certainly due to the election outcome.
James River’s shares are down 22.3% this morning, at $3.65 in a 52-week range of $1.68 to $9.18. The consensus target price for the shares was around $3.21 before today’s report.
For more coverage of how the election could affect stock prices, see our Election Winners and Losers story.
Paul Ausick
Take Charge of Your Retirement In Just A Few Minutes (Sponsor)
Retirement planning doesn’t have to feel overwhelming. The key is finding expert guidance—and SmartAsset’s made it easier than ever for you to connect with a vetted financial advisor.
Here’s how it works:
- Answer a Few Simple Questions. Tell us a bit about your goals and preferences—it only takes a few minutes!
- Get Matched with Vetted Advisors Our smart tool matches you with up to three pre-screened, vetted advisors who serve your area and are held to a fiduciary standard to act in your best interests. Click here to begin
- Choose Your Fit Review their profiles, schedule an introductory call (or meet in person), and select the advisor who feel is right for you.
Why wait? Start building the retirement you’ve always dreamed of. Click here to get started today!
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.