Shares of coal producer Peabody Energy Corp (BTU) plunged 5.59% on Thursday to close at $17.32, following the company's disappointing fourth-quarter 2024 earnings release.
Peabody reported Q4 2024 earnings per share of $0.25, widely missing analysts' estimates ranging from $0.37 to $0.52. While revenue of $1.123 billion beat expectations slightly, it was down 9.06% year-over-year.
The biggest drag on results was the seaborne metallurgical coal segment, where adjusted core earnings plummeted 86.3% from a year ago to just $22.8 million. Peabody cited higher costs and lower realized prices for the segment's poor performance.
For Q1 2025, Peabody expects costs in the seaborne metallurgical segment to remain elevated at $125-$135 per ton due to a planned longwall move at its Shoal Creek mine. This clouded the near-term outlook for the critical steelmaking coal business.
While Peabody highlighted positive developments like the upcoming Centurion mine ramp-up and acquisition of premium Australian coking coal assets, these were overshadowed by the weak Q4 results and muted start to 2025 based on the Q1 guidance.