Warrior Met Coal, Inc. (HCC) is scheduled to announce its third-quarter earnings on November 1 after the market closes. In the previous quarter, the company reported an unexpected decline in earnings.
Factors to Consider
Warrior Met Coal’s performance in the third quarter is expected to benefit from the resolution of a labor dispute, resulting in increased workforce and higher production volumes. Additionally, the planned longwall move is likely to have a positive impact on the company’s performance. Furthermore, Warrior Met Coal’s variable cost structure, particularly for wages, transportation, and royalties, is expected to contribute to its performance. The company’s high-quality met coal also commands premium pricing.
However, inflationary cost increases may offset some of the positive factors in the third quarter.
Earnings Expectations
Analysts estimate that Warrior Met Coal will report revenues of $388.2 million and earnings per share of $1.88 for the third quarter. The expected earnings per share reflects a 10.5% decrease compared to the same period last year.
Quantitative Model Prediction
According to our quantitative model, there is no clear indication of an earnings beat for Warrior Met Coal this quarter. Typically, a combination of positive Earnings ESP and a favorable Zacks Rank increases the likelihood of an earnings beat, which is not the case for the company at this time.
Stocks to Consider
For investors looking for companies in the same sector that have the potential to beat earnings estimates, consider the following:
- Murphy Oil Corp. (MUR): Earnings release on November 2 with an Earnings ESP of +1.77% and a Zacks Rank #2.
- EOG Resources, Inc. (EOG): Earnings release on November 3 with an Earnings ESP of +1.52% and a Zacks Rank #2.
- Devon Energy Corp. (DVN): Earnings release on November 7 after market close with an Earnings ESP of +0.72% and a Zacks Rank #2.
Keep track of upcoming earnings announcements with the Zacks Earnings Calendar.
Quote:
“Warrior Met Coal’s performance in the third quarter is expected to benefit from increased production volumes and favorable cost structure. However, inflationary cost increases may pose challenges.”
