Reuters reported that despite Q2 profit loss for Arch Coal Inc, the company still beat Wall Street’s estimates, and share prices went up 12 percent.
As quoted in the report:
The company, which has idled five mines in the Appalachian region to cut production, forecast an improved U.S. market for thermal coal, which is used for power generation. But it cut its sales estimate for steelmaking metallurgical coal.
Brean Murray Carret & Co analyst Lucas Pipes commented:
The beat was driven by the company’s costs solid cost performance in its Appalachian and PRB (Powder River Basin) segment.