Analysts Estimate Arch Resources (ARCH) to Report a Decline in Earnings: What to Look Out for

Core Viewpoint - The market anticipates Arch Resources (ARCH) will report a significant year-over-year decline in earnings due to lower revenues, with the upcoming earnings report expected on April 25, 2024 [1][2]. Financial Expectations - The consensus estimate for Arch Resources' quarterly earnings is $2.79 per share, reflecting a year-over-year decrease of 72.2% [2]. - Expected revenues for the quarter are $551 million, which is a decline of 36.7% compared to the same quarter last year [2]. Estimate Revisions - Over the past 30 days, the consensus EPS estimate has been revised down by 69.6%, indicating a reassessment by analysts [2]. - The Most Accurate Estimate for Arch Resources aligns with the Zacks Consensus Estimate, resulting in an Earnings ESP of 0% [5]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive Earnings ESP is a strong predictor of an earnings beat, especially when combined with a favorable Zacks Rank [4]. - Arch Resources currently holds a Zacks Rank of 5, indicating a strong sell, which complicates the prediction of an earnings beat [5][6]. Historical Performance - In the last reported quarter, Arch Resources was expected to post earnings of $6.90 per share but only achieved $6.07, resulting in a surprise of -12.03% [7]. - Over the last four quarters, the company has only beaten consensus EPS estimates once [7]. Conclusion - Arch Resources does not appear to be a compelling candidate for an earnings beat based on current estimates and historical performance, suggesting investors should consider other factors before making investment decisions [8].