By Dean Seal
Ramaco Resources, a leading metallurgical coal developer, has announced that it anticipates posting higher third-quarter earnings than previously projected by analysts. As a result, the company's stock price surged and hit a 52-week high of $11.99 in early trading, marking a 23% increase. Furthermore, this positive development has contributed to a year-to-date rise in shares of 65%.
Preliminary results released by Ramaco showcase a third-quarter profit in the range of $18 million to $20 million. When excluding one-time items, earnings are projected to be between 42 cents and 45 cents per share. Notably, this exceeds the previous estimate of 22 cents per share made by analysts surveyed by FactSet.
During the quarter, Ramaco shipped 996,000 tons of coal, representing a substantial increase of approximately 39% compared to the second quarter. Commenting on this performance, the Lexington, Ky.-based company highlighted strong customer demand overseas as a significant contributing factor. In light of such favorable conditions, Ramaco has revised its annual guidance for coal shipments, raising the midpoint to a range of 3.25 million to 3.5 million tons, up from the previous estimate of 3.1 million to 3.6 million tons.
It is clear that Ramaco Resources is well-positioned to capitalize on the current market conditions and deliver solid financial results for the third quarter. With its continued success and optimistic outlook, the company is poised for further growth and profitability.