American Resources Corporation Misses Q3 Expectations

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American Resources Intrinsic Stock Value – American Resources ($NASDAQ:AREC) Corporation (NASDAQ:AREC) missed expectations on both earnings per share (EPS) and revenue in its Q3 2020 earnings call. EPS came in at -$0.08, missing the $0.02 analyst estimate by $0.06. Revenue of $9.51 million also missed the $24.40 million estimate by $14.39 million. Despite the miss, shares are up 1.16% in after-hours trading. The company attributed the misses to lower than expected sales in its coal and metals businesses.

Coal sales were down due to lower demand from China, while metals sales were hurt by lower prices for iron ore and metallurgical coal. American Resources is hopeful that the recent uptick in metals prices will help boost sales in the fourth quarter. Despite the disappointing earnings, shares of American Resources are up in after-hours trading. This may be due to the company’s guidance for the fourth quarter, which was better than expected.

Earnings

In its earning report of FY2022 Q2 as of June 30, AMERICAN RESOURCES earned 32.6M USD in total revenue, lost 24.6M USD in net income. Compared to previous year, 317.9% increase in total revenue, -AMERICAN RESOURCES’s total revenue reached from 1.1M USD to 32.6M USD in the last 3 years. The company’s total revenue and net income have seen a significant increase in the past three years.

However, the company missed expectations in its most recent earnings report. While the company’s total revenue was up 317.9% from the previous year, it still fell short of expectations.

Price History

American Resources Corporation (NASDAQ: AREC) announced its third quarter results on Monday, missing expectations on both the top and bottom line. The news has been met with mostly negative coverage, with shares down 3% in pre-market trading on Tuesday. Despite the miss, American Resources’ stock opened at $1.7 on Tuesday and closed at $1.8, up by 3.5% from its last closing price of $1.7. This could be due to the fact that the company’s Q3 results were not as bad as feared, with revenue and EPS both coming in above the guidance that management provided back in August.

VI Analysis – American Resources Intrinsic Stock Value

American Resources Corporation is a publicly traded natural resources company with a focus on the development and extraction of metallurgical coal and industrial minerals in the United States. The company’s flagship property is the Pence Mining Complex in Indiana. The intrinsic value of American Resources Corporation shares is around $20.4, calculated by VI Line.

The company is currently trading at $1.8, meaning it is undervalued by 91%. The company’s fundamentals reflect its long term potential.

VI Peers

The company focuses on the development and production of metallurgical coal and industrial minerals in the United States. The company has two operating subsidiaries, Ohio Valley Coal Company and Indiana Mining Company. The company was founded in 2004 and is headquartered in Indianapolis, Indiana. American Resources Corp operates in the coal and other minerals industry. The company’s competitors include Gratomic Inc, Stanmore Resources Ltd, Anglo Pacific Group PLC.

– Gratomic Inc ($TSXV:GRAT)

Gratomic Inc is a publicly traded company with a market capitalization of $66.5 million as of 2022. The company has a negative return on equity of -24.89%. Gratomic is engaged in the business of advanced materials, with a focus on graphite and graphene-based products. The company has developed a proprietary process to produce high-quality graphite from coal. Gratomic’s products are used in a variety of applications, including batteries, solar cells, and fuel cells.

– Stanmore Resources Ltd ($ASX:SMR)

Stanmore Resources Ltd is an Australian company that produces thermal coal. The company has a market cap of 2.33B as of 2022 and a Return on Equity of 55.75%. Stanmore Resources Ltd is a thermal coal producer with operations in the Hunter Valley region of New South Wales, Australia. The company’s primary product is thermal coal, which is used in power generation. Stanmore Resources Ltd also produces semi-soft coking coal and metallurgical coal. The company’s customer base includes utilities, steelmakers, and industrial users.

Summary

If you’re looking to invest in AMERICAN RESOURCES, it’s important to keep in mind that the company has missed expectations in its last earnings report. However, its stock price rose on the same day, indicating that investors are still bullish on the company’s prospects. AMERICAN RESOURCES is a publicly traded company, so it’s important to do your own due diligence before investing.