Overview

* Warrior Met Coal ( HCC ) Q2 revenue beats analyst expectations despite weaker market conditions

* Net income for Q2 falls sharply from last year due to lower coal prices

* First commercial sales of Blue Creek coal achieved ahead of schedule

Outlook

* Warrior expects full-year coal sales of 8.8 - 9.5 mln short tons

* Company projects full-year coal production of 8.3 - 9.1 mln short tons

* Warrior anticipates cash cost of sales $110 - $120 per short ton

* Company plans $225 - $250 mln capital spending for Blue Creek project

Result Drivers

* BLUE CREEK SALES - First commercial sales of Blue Creek steelmaking coal achieved ahead of schedule, contributing to strong cash margins

* COST STRUCTURE - Inclusion of Blue Creek coal in sales mix reduced cash cost of sales due to lower inherent cost structure

* PRODUCTION INCREASE - Total sales and production volumes increased by 6% compared to prior year, driven by Blue Creek coal

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Beat $297.50 $291.70

Revenue mln mln (5

Analysts

)

Q2 EPS $0.11

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the iron & steel peer group is "buy"

* Wall Street's median 12-month price target for Warrior Met Coal Inc ( HCC ) is $56.50, about 4.1% above its August 5 closing price of $54.17

* The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 14 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)