Why Coking Coal Provider Arch Resources Shares Are Diving Today
Portfolio Pulse from Lekha Gupta
Arch Resources Inc (NYSE:ARCH) shares fell after reporting mixed Q4 results. Revenue was $774.0 million, down from $859.5 million YOY but above consensus. Adjusted EBITDA and EPS missed expectations. The company saw a decrease in coking coal sales volume and announced a quarterly cash dividend of $1.65 per share. It also repurchased $3.0 million in shares, with $217.7 million remaining under its repurchase program. The outlook for 2024 includes an increase in coking coal production and solid contributions from thermal assets.
February 15, 2024 | 5:17 pm
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Arch Resources reported mixed Q4 results with revenue above consensus but lower EBITDA and EPS. Declared a $1.65/share dividend and repurchased $3M in shares. Positive outlook for 2024 with increased coking coal production.
The mixed Q4 results, particularly the miss on EPS and adjusted EBITDA, are likely to negatively impact investor sentiment in the short term, leading to a decrease in stock price. However, the declaration of a dividend and share repurchase may provide some support. The positive outlook for 2024 could mitigate some of the negative impact over time.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100