Shares of Lexington-based metallurgical coal developer, Ramaco Resources (NASDAQ:METC), hit a 52-week high at $11.99 on Tuesday, marking a significant 65% rise year-to-date. The surge followed the company's strong third-quarter earnings, which comfortably outpaced FactSet's estimates. According to InvestingPro, the company is currently trading near its 52-week high, which is a sign of its strong performance in recent months.
FactSet had projected an adjusted EPS of 22 cents for Q3, but Ramaco reported a range of 42-45 cents. This impressive performance was primarily driven by robust overseas demand for coal, leading to a shipment of 996k tons during the quarter. The company also reported a profit between $18 and $20 million for the same period. It's worth noting that according to InvestingPro data, the company's P/E Ratio stands at 7.77, indicating that its earnings are robust relative to its share price.
The robust demand and subsequent earnings have prompted Ramaco to revise its annual guidance upwards. The new projection stands at 3.25-3.5 million tons, an increase from the prior range. InvestingPro Tips also highlight that Ramaco has seen a significant return over the last three months, further emphasizing the company's upward trajectory.
This substantial upward revision in guidance and strong Q3 results underline the growing strength of Ramaco's operations and its capacity to capitalize on global market dynamics. The company's performance is reflective of the broader trend in the coal industry, where strong overseas demand is driving up prices and profits for producers.
According to InvestingPro, Ramaco operates with a high return on assets, which is a positive indicator of how effectively the company is using its assets to generate earnings. Additionally, the company has been aggressively buying back shares, a strategy often employed by management when they believe the company's shares are undervalued.
InvestingPro Data reveals that Ramaco's Market Cap stands at 617.22M USD, with revenue at 575.98M USD, indicating a healthy financial status. The company also pays a significant dividend to shareholders, with a dividend yield of 5.13%, which could make it an attractive option for income-focused investors.
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