Arch Coal Cuts 2010 Guidance; Shares Fall (ACI)

Filed in ceo, dividend, earnings, Gold Investing, Guidance, o, shares by on January 12, 2011 0 Comments

Coal producer Arch Coal, Inc. ( ACI ) late Tuesday lowered its full-year 2010 earnings guidance, sending its shares lower in aftermarket trading. The company said it now expects adjusted 2010 earnings to range from $1.11 to $1.15 per share, down significantly from its prior guidance of $1.25 to $1.40 per share. On average, Wall Street analysts expect $1.17 per share for the year. CEO Steven F. Leer said that “Lower shipment levels, partially driven by poor Eastern rail service, contributed to the guidance revision for 2010…In addition, the Mountain Laurel operation was impacted in December by geologic challenges, which marginally affected our planned production during the quarter.” Arch Coal shares fell $1.28, or -3.6%, in premarket trading Wednesday. The Bottom Line Shares of Arch Coal ( ACI ) have a 1.13% dividend yield, based on last night’s closing stock price of $35.53. The stock has technical support in the $30-$32 price area. If the shares can firm up, we see overhead resistance around the $40 price level. Arch Coal, Inc. ( ACI ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars. Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

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Arch Coal Cuts 2010 Guidance; Shares Fall (ACI)

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