Have Arch Coal Inc (ACI) Earnings Reached a Turning Point?

Still, the prospects for domestic lower-emission coal use haven’t disappeared entirely. Last month, utility giant Duke Energy Corp (NYSE:DUK) brought a coal gasification plant into operation, which offers 70% fewer pollutants and 50% less carbon dioxide than traditional coal-fired power plants. If nat-gas prices rise back toward more typical levels, then such efforts could make coal use more price-competitive while addressing pollution concerns.

Arch has chosen to take some dramatic measures to shore up its balance sheet and unlock shareholder value. Late last month, it sold off some of its coal assets in Utah to a private company for $435 million, with CEO John Eaves pointing to the benefits of focusing on its most important assets and boosting its financial flexibility in making the sale.

In the Arch Coal earnings report, be sure to compare the company’s results with Peabody Energy Corporation (NYSE:BTU)’s earnings report from earlier this week. With Peabody having seen its stock surge on an unexpected profit that overcame a 13% drop in revenue, Arch Coal needs to demonstrate its own ability to make the most of tough conditions in order to give investors the hope for a lasting turnaround.

The article Have Arch Coal Earnings Reached a Turning Point? originally appeared on Fool.com is written by Dan Caplinger.

Fool contributor Dan Caplinger has no position in any stocks mentioned. You can follow him on Twitter @DanCaplinger. The Motley Fool recommends Kinder Morgan. The Motley Fool owns shares of Kinder Morgan.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.