Has Peabody Energy Corp. (NYSE: BTU) Suffered too Many Losses?

Peabody Energy Corp. (NYSE: BTU), the world’s largest private sector coal company reported its third-quarter results for the current financial year before the markets opened on Monday. The company, which is a global leader in sustainable mining and clean coal solutions, reported a diluted loss of $0.59 per share on net revenue of $ 1.72 billion. For the same quarter a year ago, Peabody Energy Corp. (NYSE: BTU) reported a loss of $0.05 per share on revenues of $1.8 billion. The performance by the company was considerably worse in comparison to the previous fiscal quarter. However, it outperformed the consensus of analysts who had predicted a loss of $0.66 per share on revenues of $1.64 billion.

Peabody Energy Corp. (NYSE: BTU), which serves metallurgical and thermal coal to 25 countries across 6 continents reported a fall in US mining income of $1.02 billion because of lower volumes and diminished Midwestern income for every ton. Australian incomes fell 4% as higher volumes mostly counterbalanced a 13% drop in cost. However it is projected that the U.S. demand for coal will rise in 2015 by 15 million tons above the 2013 levels. The company expects that its production for 2014 will remain fully priced and projects that the 2015 production will be 85% fully priced. It is however also expected that production in 2016 will be priced at 40% to 50% based on this year’s expected production.

The company’s CEO believes that these are challenging times for the coal industry. However he stated that Peabody Energy Corp. (NYSE: BTU) continues to control the controllable and takes strategic decisions in the best interests of the company which includes lower costs, reduced capital targets, strong operating cash flow and a strong operating performance. The CEO also anticipated a more noteworthy acknowledgment of proclaimed metallurgical coal supply reductions, proceeded with development in Indian coal imports, and stated that Southern Powder River Basin rail execution performance would be improved and enhanced to reconstruct utility stockpiles and take care of solid underlying demand.

Peabody Energy Corp. (NYSE: BTU) expects to post a yearly loss of $1.38 to $1.48 per share compared to a predicted loss of $1.46. The company expects to sell around 250 million tons of coal, which will be slightly higher than the sales of 2013. Peabody Energy Corp. (NYSE: BTU) also forecasts adjusted EBITDA of $765 million to $815 million.

Peabody Energy Corp. (NYSE: BTU) noted that expenses in the United States are down 1% to 3% for every ton, and income for every ton is required to be around 2% to 4% below 2013 levels. Australian expenses have dropped to about $70 a ton and that is required to minimize the loss. Peabody Energy Corp. (NYSE: BTU) didn’t give any forecasts for its final quarter of 2014. However analysts believe that the organization will have a loss of $0.33 per share on incomes of $1.65 billion. Shares in the Stock Exchange were surprisingly up around 0.6% in premarket; the stock was trading on Monday morning at $11.10 with a 52-week range between $10.00 and $21.88. Some analysts had given the stock a $17.00 price target before the report was announced.