Why Peabody Energy Stock Is Rising

Peabody Energy Corp BTU shares are trading higher Tuesday after the company reported fourth-quarter results that easily beat analyst expectations.

What Happened: Peabody Energy reported fourth-quarter revenue of $1.63 billion, which beat consensus estimates of $1.39 billion, according to Benzinga Pro. The company reported quarterly adjusted earnings of $3.89 per share, which beat average analyst estimates of $2.16 per share. 

Peabody Energy also reported strong cash flow of $580 million in the fourth quarter.

The company said it retired all senior secured debt during the fourth quarter and ended the year with $1.307 billion in cash and equivalents.

"Our remarkable fourth quarter results demonstrated the value of Peabody's diverse asset portfolio.  While there were challenges to overcome, we were able to deliver record Free Cash Flow and repay all remaining senior secured debt," said Jim Grech, president and CEO of Peabody Energy. 

"Additionally, due to our strong operating results and financial condition, we are actively addressing the remaining requirements to implement a shareholder return program," Grech added.

Peabody Energy will host an earnings call to discuss these results at 11 a.m. ET.

See Also: Why Cleveland-Cliffs Stock Is Sliding

BTU Price Action: Peabody has a 52-week high of $33.29 and a 52-week low of $14.34.

The stock was up 6.26% at $27.99 at time of publication, according to Benzinga Pro.

Photo: courtesy of Peabody Energy.