Why Energy Company Alliance Resource Partners Shares Are Falling Today
Portfolio Pulse from Lekha Gupta
Alliance Resource Partners LP (NASDAQ:ARLP) shares dropped after reporting Q4 earnings and sales that missed expectations. Revenue fell 11.2% Y/Y to $625.4 million, below the consensus of $661.9 million, due to lower coal and oil & gas prices and decreased coal sales volumes. Earnings per unit were $0.88, under the expected $1.14. The company completed $24.8 million in oil & gas mineral interest acquisitions, expects coal sales volumes of 34.0 – 35.8 million short tons for FY24, and anticipates benefits from major infrastructure projects in 2025. ARLP announced a quarterly cash distribution of $0.70 per unit, payable on February 14, 2024.
January 29, 2024 | 3:46 pm
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NEGATIVE IMPACT
Alliance Resource Partners reported lower than expected Q4 earnings and sales, with a significant year-over-year revenue decline. Despite this, they have completed substantial acquisitions and have a positive outlook for FY24.
The immediate negative reaction in ARLP's stock price is due to the earnings miss and revenue decline, which are key indicators of the company's performance. The market typically reacts unfavorably to such news, which can lead to a short-term decrease in stock price. However, the company's positive guidance for FY24 and strategic investments may mitigate some of the negative impact over time.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100