Walter Energy (WLT) analysts are projecting impressive growth in 2010 as shares continue to climb.
Company Description
Walter Energy produces coking coal for the steel industry. Additionally, the company provides steam and industrial coal, metallurgical coke and methane gas.
Beat the Street
On Oct 20 Walter Energy reported third-quarter results that showed a 35% jump in coking cola sales, to 1.9 million tons. Net income came in at $24.4 million, or 45 cents per share.
Headed into the announcement, analysts were expecting just 27 cents, making it the fifth consecutive earnings surprise.
Comments from the CEO
Victor Patrick, Walter Energy’s CEO, said “We continue to see improving market conditions for our product and we are on track to achieve sales of approximately 3.5 million tons in the second half.”
Estimates Surge
The Zacks Consensus Estimate for full-year 2009 is split and now projects EPS of $2.64. However, 9 upward revisions have been submitted for 2010, bringing the consensus to $6.75, from $6.40 in the past 3 months. This would be a growth rate of 155%.
The Chart
Shares of WLT are trading at just under 11 times forward earnings. Also, despite some volatility, the overall trend for Walter Energy is up. Take a look at the chart below.
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