Two Large Cap Stock Earnings: Alpha Natural Resources & El Paso Corp (NYSE:ANR, EP)
Alpha Natural Resources, Inc. (NYSE:ANR) shares slid in the pre-market session as the company reported a worse-than-estimated loss for the first-quarter due to unseasonably warm weather and the continued challenges of competition from cheap natural gas.
The company reported a loss of $29.1 million, or 13 cents a share, reversing a year ago profit of $49.8 million, or 41 cents a share. Excluding onetime expenses, the company the loss from continuing operations was 27 cents a share, missing analysts’ estimates by 21 cents.
Revenue during the quarter grew 71% to $1.93 billion. Operating margin swung to negative 1.5 from its prior-year 7%.
Moreover, the company again reduced 2012 metallurgical coal shipment guidance by 1 million tons. It now expects shipments of 20 million to 24 million tons. It cut its projection for eastern steam coal shipment by 4 million tons, now seeing 38 million to 44 million tons, and western steam coal by 3 million tons, expecting to ship 42 million to 48 million tons.
Shares of ANR are down 1.55% in the pre-market session.
El Paso Corp (NYSE:EP) shares fell in the pre-market session after the company’s first-quarter adjusted profit, came below analysts’ expectations.
The company said that it earned $86 million, or $0.11 per share, up compared with $62 million, or $0.08 per share, for the first quarter 2011. On an adjusted basis, the company would have earned 20 cents a share, shy of analysts’ forecast by 9 cents.
El Paso’s effective tax rate for reported earnings for the quarter was 32 percent. The company’s effective tax rate is below the statutory rate due to income attributable to nontaxable noncontrolling interests and dividend exclusions on earnings from unconsolidated affiliates where El Paso anticipates receiving dividends.
Shares EP are down 1% in pre-market trading.