Arch coal reported better than expected fourth quarter earnings of $0.56 per share, beating ou EPS expectations by 44%. Strong results were associated with the early start-up and Q4 contribution from the Mountain Laurel longwall which doubled ACI s metallurgical and PCI sales and will continue to boost margins in the region as well. The company s market driven strategy has paid off as prices have remained near record levels and a significant portion of its 2008 and 2009 production is unpriced. This will allow them to leverage their reserve base and should give them great momentum throughout 2008. We have upgraded ACI to
Buy from Hold with a twelve month target price of $53.00 per share. We have increased our Q1 and full year 2008 estimates to $0.49 and $2.39 per share, respectively.
by Zacks
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Arch Coal, Inc. engages in mining, processing, and marketing bituminous and sub-bituminous coal with low sulfur content in the United States. As of December 31, 2006, the company operated 21 active mines; and owned or controlled approximately 2.9 billion tons of proven and probable recoverable reserves. Its mines are located in southern West Virginia, eastern Kentucky, Virginia, Wyoming, Colorado, and Utah. Arch Coal sells its coal to producers of electric power, steel producers, and industrial facilities. The company, formerly known as Arch Mineral Corporation, was founded in 1969 and is headquartered in St. Louis, Missouri.
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$46.36 (02/07/08)
