Walter Energy, Inc. (WLT) - Bear of the Day

By Zacks | November 29, 2012 AAA

Walter Energy Inc. (WLT) posted lackluster results in the third quarter with both top and bottom lines lagging the Zacks Consensus Estimates. The global coal market downturn and softness in selling prices negatively
impacted results.

The global economic stalemate is expected to linger, thereby dragging down the company's sales and profit. Declining sales resulting in coal stockpiles would prove unprofitable for the company in the short term. This, along with the company's narrow capex outlook for 2013 is expected to shake investor confidence.

We remain bearish for the company stock in the long run. Our $26.00 target price is based on 2.4x trailing 12-month cash flow per share.

You May Also Like

Related Analysis
  1. Stock Analysis

    Whitestone REIT Buys Hard Corners at 2 Phoenix Properties - Analyst Blog

  2. Stock Analysis

    Assurant Inc. (AIZ) Sees Growth from Diversified Segments - Analyst Blog

  3. Stock Analysis

    Will Philips (PHG) Benefit with the Volcano Merger Move? - Analyst Blog

  4. Stock Analysis

    Safeway Up on Sale of Property Development Centers' Assets - Analyst Blog

  5. Stock Analysis

    Will Stryker Finally Bid on Smith & Nephew This New Year? - Analyst Blog

Trading Center