Alpha Metallurgical Resources stock falls 4% on weak guidance despite Q2 earnings beat

NEW YORK – Alpha Metallurgical Resources, Inc. (NYSE: AMR) reported second quarter earnings that beat analyst estimates, but the stock fell 4% as weak guidance overshadowed the results.

The Tennessee-based metallurgical coal producer reported second quarter net income of $58.9 million, or $4.49 per diluted share, compared to $181.4 million, or $12.16 per share, in the same quarter last year. Analysts were expecting earnings of $4.46 per share.

Revenue for the quarter came in at $804 million, beating the consensus estimate of $733.1 million but down from $858.4 million in Q2 2023.

Alpha’s Met segment coal sales realization averaged $141.86 per ton in Q2, down from $172.51 per ton a year ago. The company sold 4.6 million tons of met coal in the quarter, up from 4.1 million tons last year.

“As we discussed in our first quarter reporting disclosures, weakening steel demand has negatively impacted metallurgical coal markets,” said CEO Andy Eidson. “Waning demand, coupled with significant geopolitical uncertainty across the world, brought about the expected market challenges we faced in Q2 that have intensified in Q3.”

For full year 2024, Alpha guided for Met segment total shipments of 16.4-17.8 million tons.

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