Q2 Earnings Preview - ARCH

Baltimore Bridge, Pricing and Purchased Tons Make for Murky Waters

Time flies. Seems like just yesterday we were starting the last earnings season, but here we are again with another round. First up for the US coal boys on Q2 earnings is ARCH 0.00%↑ who reports tomorrow (7/25/24) and will likely set the tone that the rest of the industry will have to meet or improve upon.

Given the backdrop of shoulder season for thermal coal, a 10%+ decline in average quarterly US met prices, and the Key Bridge collapse in Baltimore limiting shipments and forcing ARCH to use higher-cost logistical routes to port, I am not really expecting to be surprised to the upside.

That said, there are a few reasons to be a little more optimistic…