Coal mining company, Walter Energy, Inc.(WLT) reported a fourth quarter loss on Thursday, and missed analysts estimate.
The Birmingham, AL based company reported a fourth quarter net loss of -$71 million or -$1.13 per share, compared to earnings of $80.3 million or $1.28 per share last year. Excluding special items, the company reported a net loss of -$66.4 million. Analysts expected to see a loss of 89 cents per share.
Revenue for the quarter dropped to $478.78 million, from $703.01 million last year. Analysts expected to see revenue of $511.31 million.
Following the disappointing news on the company’s quarter, hedge fund Audley Capital Advisors LLP said that they now plan to replace half of the company’s 10 board members. The hedge fund criticized WLT for missing outlooks and said that the company’s directors have minimal mining experience.
Although the hedge fund owns less than 1% of the company, it has experience in the coal industry, previously having a large stake in Western Coal with was acquired by WLT in 2011.
WLT said that its business has been hurt by weak demand, especially in China.
Walter Energy shares were down -$1.76, or -4.79% during premarket trading Thursday. The stock has declined -44% in the past year.
The Bottom Line
Shares of Walter Energy, Inc.(WLT) have a 1.36% yield, based on Wednesday’s closing price of $36.76.
Walter Energy, Inc.(WLT) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.0 out of 5 stars.
FREE Dividend Stock Newsletter
Get the Dividend.com email newsletter to receive:
- A free copy of our acclaimed report, 5 Rules of Winning Dividend Stock Investing
- Free daily investing tips and picks from Dividend.com CEO Paul Rubillo
- Tons of great market analysis and recommendations