Peabody Energy (NYSE:BTU) Shares Gap Down After Earnings Miss

Key Points

• Peabody Energy shares fell sharply after the company reported a second-quarter loss of $0.74 per share, missing the consensus estimate of a $0.31 loss. The stock opened at $21.42 versus a prior close of $23.24.
• Revenue rose 12.7% year over year, supported by coal pricing, while the Centurion metallurgical coal mine advanced toward targeted production rates. However, the company’s net loss widened to $90.6 million from $27.6 million a year earlier.
• Peabody maintained its quarterly dividend at $0.075 per share, but analyst sentiment remains cautious, with a consensus rating of “Hold” and an average price target of $34.12. Securities-fraud allegations related to Centurion operations and 2026 guidance add further risk.

Peabody Energy Corporation (NYSE:BTU - Get Free Report)'s share price gapped down prior to trading on Wednesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $23.24, but opened at $21.42. Peabody Energy shares last traded at $20.4510, with a volume of 1,159,791 shares.

The coal producer reported ($0.74) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.31) by ($0.43). Peabody Energy had a negative return on equity of 2.80% and a negative net margin of 3.07%.The company's revenue was up 12.7% compared to the same quarter last year. During the same period in the prior year, the company posted ($0.23) earnings per share.

Peabody Energy Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Monday, June 8th. Investors of record on Tuesday, May 19th were given a $0.075 dividend. This represents a $0.30 annualized dividend and a yield of 1.5%. The ex-dividend date was Tuesday, May 19th. Peabody Energy's payout ratio is currently -30.30%.

Peabody Energy News Summary

Here are the key news stories impacting Peabody Energy this week:

• Positive Sentiment: Peabody said its Centurion metallurgical coal mine is advancing toward targeted production rates. The company also reported that higher seaborne thermal-coal pricing benefited results and that strategic financial actions strengthened its capital structure. Peabody Reports Results for the Quarter Ended June 30, 2026
• Positive Sentiment: The board declared a quarterly dividend of $0.075 per share, payable September 3 to shareholders of record August 12. The payout provides some support for income-focused investors. Peabody Board Declares Dividend on Common Stock
• Neutral Sentiment: Second-quarter revenue increased 12.7% year over year and was reported as roughly in line with expectations, indicating continued demand and pricing support despite the bottom-line loss. Peabody Energy Q2 2026 Earnings Results
• Negative Sentiment: Peabody reported a second-quarter net loss of $90.6 million, or $0.74 per diluted share, versus a $27.6 million loss, or $0.23 per share, a year earlier. The result missed the consensus loss estimate of $0.31 per share by $0.43, while net margin and return on equity remained negative.
• Negative Sentiment: Several law firms are promoting a securities-fraud class action alleging Peabody misled investors about Centurion’s operating status, longwall production rates and 2026 guidance. Investors have until August 24, 2026, to seek lead-plaintiff status. The allegations have not been proven, but the litigation adds financial, reputational and execution risk. Peabody Energy Securities Class Action Notice

Wall Street Analysts Forecast Growth

A number of brokerages have commented on BTU. Zacks Research raised shares of Peabody Energy from a "strong sell" rating to a "hold" rating in a research note on Monday, June 29th. Weiss Ratings downgraded shares of Peabody Energy from a "sell (d+)" rating to a "sell (d)" rating in a report on Tuesday, June 23rd. B. Riley Financial downgraded shares of Peabody Energy from a "buy" rating to a "neutral" rating and lowered their price target for the company from $42.00 to $30.00 in a report on Thursday, April 30th. Finally, UBS Group dropped their price target on Peabody Energy from $32.00 to $30.50 and set a "neutral" rating for the company in a research report on Wednesday, May 6th. Two equities research analysts have rated the stock with a Buy rating, three have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, Peabody Energy has an average rating of "Hold" and an average target price of $34.12.

Institutional Trading of Peabody Energy

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in BTU. Vanguard Group Inc. lifted its stake in Peabody Energy by 8.5% in the fourth quarter. Vanguard Group Inc. now owns 15,135,096 shares of the coal producer's stock worth $449,512,000 after purchasing an additional 1,191,438 shares during the last quarter. State Street Corp grew its stake in shares of Peabody Energy by 3.3% during the fourth quarter. State Street Corp now owns 9,532,978 shares of the coal producer's stock valued at $283,129,000 after buying an additional 306,187 shares during the last quarter. Dimensional Fund Advisors LP grew its stake in shares of Peabody Energy by 0.9% during the first quarter. Dimensional Fund Advisors LP now owns 6,233,585 shares of the coal producer's stock valued at $205,429,000 after buying an additional 54,072 shares during the last quarter. Progeny 3 Inc. raised its holdings in shares of Peabody Energy by 0.5% in the second quarter. Progeny 3 Inc. now owns 3,916,934 shares of the coal producer's stock worth $52,565,000 after buying an additional 18,920 shares during the period. Finally, Massachusetts Financial Services Co. MA purchased a new stake in shares of Peabody Energy in the fourth quarter worth approximately $90,603,000. 87.44% of the stock is owned by hedge funds and other institutional investors.

Peabody Energy Price Performance

The company has a current ratio of 1.87, a quick ratio of 1.37 and a debt-to-equity ratio of 0.09. The stock has a market capitalization of $2.50 billion, a P/E ratio of -20.73 and a beta of 0.38. The stock has a 50 day moving average of $24.85 and a 200-day moving average of $29.68.

About Peabody Energy

Peabody Energy Corporation is one of the world's largest private-sector coal companies, engaged primarily in the production and sale of metallurgical and thermal coal. The company's operations span surface and underground mines, serving utilities, steel mills and other industrial customers that rely on coal as an essential component in power generation and steelmaking. Peabody's product portfolio includes high-energy thermal coal for electricity generation and low-volatile metallurgical coal used in steel production, reflecting its diverse end-market reach.

Founded in 1883, Peabody Energy has grown from a regional mining concern into a global energy supplier.

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